From CNBC: 2024-12-24 07:53:05

The biggest banks are planning to sue the Federal Reserve over the annual bank stress tests, which dictate share repurchases and dividends. The Fed is looking to make changes to the tests, seeking public comment on transparency and reducing capital buffer requirements. Big banks like JPMorgan, Citigroup, and Goldman Sachs are welcoming the announcement but are considering further action to ensure timely reforms. Groups like the BPI and American Bankers Association have raised concerns about the stress test process in the past, claiming it hurts bank lending and economic growth.

Read more: Biggest banks planning to sue the Federal Reserve over annual stress tests