TCH Files Amicus Brief in Support of Federal Reserve Banks’ Discretion to Grant Master Accounts
The Clearing House Association along with the Bank Policy Institute filed an amicus brief with the U.S. 10th Circuit Court of Appeals in the matter of Custodia Bank, Inc. v. Federal Reserve Board of Governors, et al. supporting the position that the Federal Reserve Banks have the discretion to approve or reject applications for Federal Reserve master accounts. Custodia contends that master accounts must be granted to any bank that meets the statutory criteria for eligibility. Siding with the Board and the Federal Reserve Bank of Kansas City, TCH argued that master account holders can pose risks to the financial system and that the discretion to reject applications based on risk is both protected by statute and supported by sound policy.
To read the full brief click here.
To read the full brief click here.