Banks Sue Fed in Challenge to How Stress Tests Are Conducted

The Federal Reserve doesn’t allow for appropriate public input when designing bank stress tests, bank trade groups said in a lawsuit seeking to force the central bank to open the design of the tests to public comment.

The suit, filed Tuesday in the US District Court for the Southern District of Ohio, doesn’t seek to eliminate the annual stress testing and capital planning requirements that have been in place since 2009 as part of the government’s response to the 2008 financial crisis.