U.S. Banks and Businesses Sue Fed Over 'Lack of Transparency' in Stress Tests

Investing.com -- On Tuesday, a group of organizations representing U.S. banks and businesses announced that they have filed a lawsuit against the Federal Reserve. The legal action aims to challenge what the groups describe as the "opaque aspects" of the stress testing framework. Among the groups involved in the lawsuit are the American Bankers Association and the U.S. Chamber of Commerce. In a joint statement, they indicated that the purpose of the lawsuit is to "address long-standing legal violations by bringing the stress testing process into the public eye as required by federal law." The groups argue that the public should have a say in this process under federal laws. The lawsuit seeks to address these concerns and bring changes to the implementation of the stress testing process.