JPMorgan Chase, Citigroup, Goldman Sachs and other Wall Street banks are planning to file a joint lawsuit against the Federal Reserve, dissatisfied with this regulation

Several large banks, unhappy with the Fed's annual stress test requirements, plan to file lawsuits alleging that the regulations are too stringent. Former Fed Vice Chairman Blind analyzed that the two sides may reach a settlement before entering the courtroom. (Synopsis: Fed microphone: Fed ultra-low Intrerest Rate era ends, Trump grasps the key to 2025 interest rate cuts) (Background supplement: Trump: No plans to replace Fed Chairman Powell, the probability of another Fed rate cut in December exceeds 85%) According to CNBC, several large banks plan to file lawsuits this week because they are dissatisfied with the Fed's stress test norms. The Fed's stress test is an annual routine that requires banks to prepare adequate capital buffers for non-performing loans and sets limits on share buybacks and dividends. The move is intended to ensure a robust financial system, but banks say the Fed is too demanding, putting pressure on business operations. Fed statement doesn't allay bank concerns After Monday's close, the Fed issued a statement announcing plans to make adjustments to the stress test framework, without elaborating on what would be. The Fed added that these adjustments will not have a material impact on overall capital requirements, meaning banks' main concerns may remain unresolved. Greg Bell, chief executive of the Banking Policy Institute (BPI), which represents large banks such as JPMorgan, Citigroup and Goldman Sachs, welcomed the statement as an important step towards transparency and accountability. However, Bell also hinted that large banks may take further steps, stressing: "We are carefully studying this statement and considering other actions to promote reforms that are both legal and policy-compliant." Former Fed Vice Chairman Predicts Out-of-Court Settlement In response to the matter, former Fed Vice Chairman Alan Blind said on "Squawk on the Street" that he believes the conflict between the Fed and the bank is more likely to end with an out-of-court settlement than to escalate further to the court. He pointed out that neither the Fed nor the banking industry wants to see the impact of protracted litigation on market confidence. Related reports Fed microphone: Fed ultra-low Intrerest Rate era ends, Trump grasps the key to 2025 interest rate cuts Trump: There is no plan to replace Fed Chairman Powell, and the probability of another Fed rate cut in December exceeds 85% Fed officials support continuing to cut the Intrerest Rate, and Fed hawks also relax: the December rate cut is reasonable (JPMorgan, Citi, Goldman Sachs and other big Wall Street banks intend to jointly file a complaint against the Fed, because they are dissatisfied with this regulation〉 This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Block Chain News Media".