Federal Reserve Sued Over Alleged Collusion on Bank Capital Rules
A financial watchdog group has filed a lawsuit against the Federal Reserve and its vice chair for supervision, Michelle Bowman. Better Markets alleges that officials manipulated the rulemaking process for proposed bank capital requirements by holding undisclosed meetings with Wall Street executives, including JPMorgan Chase and Goldman Sachs.
The organization claims these actions violated constitutional due process protections by creating a biased and predetermined rulemaking process. It's seeking to withdraw and re-propose the capital rules, appoint an uninvolved Fed official to oversee a new process, and bar Bowman and other officials from further participation.
In related news, Nasdaq has invested $100 million in Payward, the parent company of cryptocurrency exchange Kraken, as part of a partnership focused on developing tokenization infrastructure. The goal is to allow tokenized assets to trade and settle outside conventional market hours while maintaining regulatory compliance, investor protections, and market safeguards.