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US banking foyer teams stated on Tuesday they’d filed a lawsuit towards the Federal Reserve over the central financial institution’s stress testing framework, a significant escalation between the business and regulators.
The announcement comes a day after the Fed introduced plans for “important modifications” to its annual stress exams for big US banks in an effort to make the method extra clear and the outcomes much less unstable.
“We recognize the board’s announcement as a primary step in direction of transparency and accountability, however consider it’s essential to file this go well with to protect our authorized rights,” stated Greg Baer, president and chief of the business group the Financial institution Coverage Institute, considered one of 5 plaintiffs within the case.
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