US media: Some large US banks plan to sue the Federal Reserve over annual stress tests

several large banks are planning to sue the Federal Reserve over the annual bank stress tests, as revealed by an insider. The source stated that a lawsuit is expected to be filed this week, possibly as early as Tuesday morning local time. The Federal Reserve's stress tests are an annual routine that requires banks to reserve sufficient cushion funds for non-performing loans, and sets the scale of stock buybacks and dividends. After the close on Monday, the Federal Reserve announced plans to adjust the bank stress tests, but did not provide details on the specific adjustments to the annual stress test framework. However, these adjustments may not be enough to alleviate concerns about heavy capital requirements for banks, as the Federal Reserve stated that "these proposed adjustments are not intended to have a substantive impact on overall capital requirements." The CEO of the Bank Policy Institute (BPI), representing major banks such as JPMorgan, Citigroup, and Goldman Sachs, Greg Bell, welcomed the Federal Reserve's statement, stating in a statement that "the Federal Reserve's statement today is the first step towards transparency and accountability." However, Bell also hinted at possible further action, stating that "we are carefully reviewing this statement and considering other measures to ensure timely and legal policy reforms."