Federal Reserve, breaking news!\n\nLarge American banks and commercial groups have sued the Federal Reserve starting December 24 local time, with plaintiffs including the American Bankers Association's Policy Institute. They accuse the Federal Reserve of illegal annual bank "stress tests" and request the court to declare the models and scenarios used in the 2024 - 2026 stress tests unlawful, hoping the Federal Reserve will disclose relevant model and scenario details for public comment. The lawsuit claims that the Federal Reserve Board lacks transparency, leading to significant fluctuations in bank capital requirements, affecting banks' ability to lend to small businesses and others.\n\nOn December 23, the Federal Reserve indicated that in light of legal developments, it is considering significant modifications to the annual bank "stress tests," including allowing banks to comment on the models they use, letting banks provide input on assumed scenarios, and potentially averaging two years of results to reduce annual fluctuations in capital allocation. These tests were created after the financial crisis and are central to the U.S. capital framework. The Federal Reserve stated that adjustments would not affect overall capital requirements and plans to initiate a public consultation process in early 2025.\n\nThe Federal Reserve's stress tests are an annual routine activity, examining how banks respond to significant declines in commercial real estate and residential prices in the most recent annual test. Previously, the U.S. Supreme Court limited regulatory agencies' power to interpret the law, and after the increase in capital requirements under the Basel III framework, criticisms from Wall Street executives regarding capital requirements intensified. In August of this year, the Federal Reserve had previously lowered the stress capital buffer requirement for Goldman Sachs.\n\nSome analysts point out that while banks may view these changes as a victory, it may be too late, and the modifications may still not be enough to alleviate banks' concerns about heavy capital requirements. However, the Bank Policy Institute, which has consistently criticized stress tests, believes the Federal Reserve's statement is a first step toward transparency and accountability, with its president stating they will carefully review and consider other reform options.\n\n#美联储放鹰 $BTC \n