A coalition of banks, including JPMorgan and Goldman Sachs, is suing the Federal Reserve over its annual bank stress tests. The Bank Policy Institute and various business associations claim the stress test process lacks public input, as mandated by federal law, and results in inconsistent capital requirements. While the Fed seeks to improve transparency and reduce volatility in capital buffer requirements, critics argue that the proposed changes may not sufficiently address concerns about stringent capital rules that impact lending and economic growth. The groups previously accused the Fed of violating the Administrative Procedure Act by not involving public feedback.
