Custodia Bank Appeals Court Loss in Fed Master Account Lawsuit

A federal judge ruled last month that the Kansas City Fed had the discretion to reject Custodia’s bid for a master account. Custodia, according to the court, had not provided sufficient evidence to back up accusations that the Fed’s Board of Governors was illegally leaning on the Kansas City branch to reject the bank’s bid for the master account which, if granted, would let Custodia directly access the Fed and not need intermediary banks.