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 dont 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 Feds 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
Hassin Bin Sober
(26,786 posts)in2herbs
(3,225 posts)to invest in the stock market to make them richer.
2naSalit
(93,420 posts)Told to sit down and STFU.
Time to eat the rich.
sakabatou
(43,249 posts)LiberalArkie
(16,653 posts)quakerboy
(14,196 posts)Yup. Quick google search says it's on the trump transition team to do list.
FakeNoose
(35,998 posts)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.
Miguelito Loveless
(4,701 posts)in the last month as a top priority.
Igel
(36,229 posts)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)lonely bird
(1,965 posts)All banks are broke.
mpcamb
(2,979 posts)LudwigPastorius
(11,065 posts)We can't use our depositors' money at the casino!! WAAAH!