Custodia Bank Loses Lawsuit Challenging Fed Rejection of Master Account Application

“Thus, except Federal Reserve Banks possess discretion to disclaim or reject a grasp account software, state chartering legal guidelines could be the one layer of insulation for the U.S. monetary system,” the decide wrote. “And in that situation, one can readily foresee a ‘race to the underside’ amongst states and politicians to draw enterprise by decreasing state chartering burdens by way of lax laws, permitting minimally regulated establishments to realize prepared entry to the central financial institution’s balances and Federal Reserve companies.”