Plaintiffs And Federal Reserve Move To Extend Stay In Stress Test Litigation Until November 12

Washington, D.C. - The Plaintiffs and Federal Reserve filed a joint motion to extend a stay in litigation challenging the Federal Reserve's stress testing framework. The joint motion, filed late last night between the Federal Reserve and a coalition of bank and business groups, requests that the Court extend a pause in the case from October 15 to November 12 or the date on which the plaintiffs file their next brief, whichever is sooner.

"The Federal Reserve acknowledges that more work remains to meet its public commitments," the plaintiffs stated. "Capital requirements affect America's economic competitiveness, which is why we support the Federal Reserve's diligent work toward a more transparent and rational capital framework."

Quick Recap

This is the second request for an extension of the stay in the case. The initial stay expired on August 1 and was extended to October 15. In the parties' latest extension request, the Federal Reserve stated that it expects to publish notices of proposed rulemaking to revise the stress test framework by October 24. The forthcoming revisions to the stress testing framework are expected to:

• Fully disclose the stress test models and invite public comment;
• Establish a process to solicit public feedback on the annual stress test scenarios and future changes to the models;
• Seek comment on the scenario design framework; and
• Introduce more objective standards, including for the global market shock and the largest counterparty default components.

The case is currently pending in the Southern District of Ohio. The plaintiffs include the Bank Policy Institute, the American Bankers Association, the U.S. Chamber of Commerce, the Ohio Bankers League and the Ohio Chamber of Commerce.

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About Bank Policy Institute

The Bank Policy Institute is a nonpartisan public policy, research and advocacy group that represents universal banks, regional banks and the major foreign banks doing business in the United States. The Institute produces academic research and analysis on regulatory and monetary policy topics, analyzes and comments on proposed regulations, and represents the financial services industry with respect to cybersecurity, fraud and other information security issues.

About American Bankers Association

The American Bankers Association is the voice of the nation's $25 trillion banking industry, which is composed of small, regional and large banks that together employ approximately 2.1 million people, safeguard $19.7 trillion in deposits and extend $13.1 trillion in loans.

About Ohio Bankers League

The OBL is the trade association for the Ohio banking industry - and is Ohio's only organization focused on meeting the needs of all banks and thrifts in the Buckeye State. The OBL is the voice of the Ohio banking industry fostering a cooperation that has made it one of the strongest and most reputable financial trade associations in the country.

About The U.S. Chamber of Commerce

The U.S. Chamber of Commerce is the world's largest business organization representing companies of all sizes across every sector of the economy. Members range from the small businesses and local chambers of commerce that line the Main Streets of America to leading industry associations and large corporations.

They all share one thing: They count on the U.S. Chamber to be their voice in Washington, across the country, and around the world. For more than 100 years, we have advocated for pro-business policies that help businesses create jobs and grow our economy.

About Ohio Chamber of Commerce

As the state's leading business advocate and resource, the Ohio Chamber of Commerce aggressively champions free enterprise, economic competitiveness, and growth for the benefit of all Ohioans.

Media Contacts

Tara PayneBank Policy [email protected]

Jeff SigmundAmerican Bankers [email protected]

Evan KleymeyerOhio Bankers [email protected]

Jessica BoulangerU.S. Chamber of [email protected]

Courtney Whetstone Ohio Chamber of [email protected]