A federal judge yesterday heard oral arguments in the lawsuit filed by ABA and Seattle-based Washington Federal seeking over $1.1 billion in damages resulting from the United States’ improper reduction in dividends paid to Federal Reserve member banks.
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In advance of oral arguments scheduled for July 27, ABA and Washington Federal yesterday filed a reply brief supporting their motion for summary judgment in their legal challenge to the United States’ improper reduction in dividends paid to Federal Reserve member banks.
ABA and Washington Federal on Wednesday filed a motion for summary judgment in their class action lawsuit seeking over $1.1 billion in damages resulting from the United States’ improper reduction in dividends paid to Federal Reserve member banks.
Let’s hope the FAST Act’s thievery serves as a wake-up call to banks that our industry is much stronger when we fight together.
In remarks to the general session of ABA’s Government Relations Summit today, Senator Sherrod Brown (D-Ohio) said that “the days of the Senate Banking Committee and its dysfunction and its less-than-busy work ethic, I hope, are behind us,” expressing his optimism for bipartisan cooperation as Congress pursues pro-growth policies.
ABA President and CEO Rob Nichols appeared on CNBC on Friday to discuss the Federal Reserve dividend litigation and the ABA Blueprint for Growth.
A Government Accountability Office report on Friday found that although the 2015 highway bill’s reduction in the dividend rate for Federal Reserve member banks with assets of more than $10 billion has had little short-term effect on Federal Reserve membership and bank operations, concerns arise for the future.
The Federal Reserve today made an annual inflation adjustment to the asset threshold in Regulation I that determines the dividend rate that certain member banks earn on Federal Reserve Bank stock, as required by the 2015 transportation spending bill. The threshold for 2017 is now set at $10.122 billion in assets.
In an appearance on “Bloomberg Markets” today, ABA President and CEO Rob Nichols said that while a full repeal of the Dodd-Frank Act is unlikely, “there’s a whole host of areas that require focus and attention to help the financial markets get the economy going.”
ABA and Seattle-based Washington Federal this afternoon filed suit in the Court of Federal Claims seeking relief for government actions that violate contracts with Federal Reserve member banks by reducing dividends paid to those institutions.