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US banking lobby groups said on Tuesday they were filing a lawsuit against the Federal Reserve over the central bank’s stress testing framework, a major development between the industry and regulators.

The announcement comes a day after the Fed announces plans for “significant changes” to the annual stress tests for large US banks in an effort to make the process more transparent and the results less volatile.

“We appreciate the board’s announcement as a first step toward transparency and accountability, but believe it is necessary to file this lawsuit to preserve our legal rights,” said Greg Baer, ​​president and chief executive of the industry group. Bank Policy Institute, one of the five plaintiffs in the case.

This is a developing story