Banks sue US Fed over stress tests, seek transparency

Banking and business groups sued the US Federal Reserve over the central bank’s annual stress tests, saying they’re seeking more transparency in how the rules are adopted.
The groups, including the Bank Policy Institute and American Bankers Association, contend that the Fed’s criteria for the tests are designed in secret and produce “vacillating and unexplained requirements and restrictions on bank capital”.
That’s affecting the cost of financial services in the US, according to a federal lawsuit filed Tuesday in Columbus, Ohio.