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BumRushDaShow

(144,169 posts)
Tue Dec 24, 2024, 01:37 PM 18 hrs ago

Biggest banks sue the Federal Reserve over annual stress tests

Source: CNBC

Published Tue, Dec 24 2024 7:53 AM EST Updated 3 Hours Ago


A group of banks and business groups are suing the Federal Reserve over the annual bank stress tests.

The Bank Policy Institute, which represents big banks like JPMorgan, Citigroup and Goldman Sachs is joining the American Bankers Association, the Ohio Bankers League, the Ohio Chamber of Commerce and the U.S. Chamber of Commerce to file the suit, which they said aims to “resolve longstanding legal violations by subjecting the stress test process to public input as required by federal law.”

The groups said they don’t oppose stress testing, but that the current process falls short and “produces vacillating and unexplained requirements and restrictions on bank capital.” CNBC earlier reported on the plans to file a suit.

The Fed’s stress test is an annual ritual that forces banks to maintain adequate cushions for bad loans and dictates the size of share repurchases and dividends.

Read more: https://www.cnbc.com/2024/12/24/biggest-banks-planning-to-sue-the-federal-reserve-over-annual-stress-tests.html

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Hassin Bin Sober

(26,786 posts)
1. Deregulate the banks and let them place all their assets in crypto - Trump (aka Elon Musk), probably.
Tue Dec 24, 2024, 01:41 PM
18 hrs ago

in2herbs

(3,225 posts)
8. They primarily want to de-regulate the banks so that Wall Street can use our deposits in banks
Tue Dec 24, 2024, 05:21 PM
15 hrs ago

to invest in the stock market to make them richer.

LiberalArkie

(16,653 posts)
4. I would think they would be trying to eliminate the FDIC and thus the payments the banks make to support the FDIC
Tue Dec 24, 2024, 02:57 PM
17 hrs ago

quakerboy

(14,196 posts)
5. I do believe that was recently mentioned
Tue Dec 24, 2024, 04:25 PM
16 hrs ago

Yup. Quick google search says it's on the trump transition team to do list.

FakeNoose

(35,998 posts)
6. I believe the New Civil War will begin before that actually occurs
Tue Dec 24, 2024, 05:10 PM
15 hrs ago

That ... or Chump will be impeached and convicted, finally and for all time.

Even the Repukes are smart enough to see what a disaster that would be.

Igel

(36,229 posts)
11. Why? You'd think they'd like the FDIC.
Tue Dec 24, 2024, 09:27 PM
10 hrs ago

The 2025 program thing said it encouraged irresponsibility of sorts--if a bank screws up, the FDIC bails them out.

This is the banks thinking that the bar against irresponsibility was set too high. But that presumes bailout if things go all pear shaped on them.

No FDIC, when the bank goes belly up it's at the mercy of market forces. Lots of banks failed. The Civil War was brutal on Southern banks. A bank crash in the 1870s wiped out a lot of them. The best they could hope for was that in bankruptcy a better bank would come along and buy up what assets they had, but investors, both those with deposits and those that owned stock, were very, very seldom made whole. But in the absence of that, the assets would just have been liquidated and a lot of people would have been entirely ruined. (Which is, in fact, what happened before the FDIC was established. Note that in discussion of how wealth was transmitted by banks in the 1800s often an account says "Bank A was bought up by Bank B," but leaves out that Bank A was usually pretty much drained of assets, of the wealth that moderns think was necessarily transmitted. )

in2herbs

(3,225 posts)
7. Project 2025 calls for dissolving the FDIC. Unsuccessful in 2017, 2025 is their first attempt. nt
Tue Dec 24, 2024, 05:19 PM
15 hrs ago
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