Several large banks plan to file a lawsuit due to dissatisfaction with the Federal Reserve's annual stress test requirements, alleging that the relevant regulations are too stringent. Former Federal Reserve Vice Chairman Alan Blinder analyzed that both sides may reach a settlement before going to court. (Background: Federal Reserve spokesperson: The era of ultra-low interest rates is over, Trump holds the key to rate cuts in 2025) (Additional context: Trump: No plans to replace Fed Chairman Powell, the likelihood of a rate cut by the Federal Reserve in December exceeds 85%) According to (CNBC) reports, several large banks plan to file a lawsuit this week due to dissatisfaction with the Federal Reserve's stress test regulations. The Federal Reserve's stress tests are an annual routine that requires banks to prepare adequate capital buffers for bad loans and set restrictions on stock buybacks and dividend payouts. This move aims to ensure the stability of the financial system, but bankers believe the Federal Reserve's requirements are too harsh and put pressure on business operations. The Federal Reserve's statement did not alleviate banks' concerns. After Monday's close, the Federal Reserve issued a statement announcing plans to adjust the stress test framework but did not specify the details. The Federal Reserve added that these adjustments would not have a substantial impact on overall capital requirements, meaning that the banks' main concerns may still be unresolved. Greg Bell, CEO of the Bank Policy Institute (BPI), representing major banks such as JPMorgan Chase, Citigroup, and Goldman Sachs, welcomed the statement, viewing it as an important step towards transparency and accountability. However, Bell also hinted that large banks may take further action, emphasizing: "We are carefully reviewing this statement and considering taking other actions to promote reforms that are both legal and policy-compliant." Former Federal Reserve Vice Chairman predicts an out-of-court settlement. Regarding this matter, former Federal Reserve Vice Chairman Alan Blinder stated on the Squawk on the Street program that he believes the conflict between the Federal Reserve and the banks is more likely to end in an out-of-court settlement rather than escalating further to court. He pointed out that neither the Federal Reserve nor the banking industry wants to see protracted litigation affect market confidence. Related reports: Federal Reserve spokesperson: The era of ultra-low interest rates is over, Trump holds the key to rate cuts in 2025. Trump: No plans to replace Fed Chairman Powell, the likelihood of a rate cut by the Federal Reserve in December exceeds 85%. Federal Reserve officials support continued rate cuts, and Fed hawks have also stated: A rate cut in December is reasonable. "JPMorgan Chase, Citigroup, Goldman Sachs, and other Wall Street banks plan to jointly sue the Federal Reserve due to dissatisfaction with this regulation." This article was first published in BlockTempo (a leading blockchain news media outlet).