Custodia Bank's Lawsuit Against Fed Over Master Account Denial Moves Forward After Court Win.
Custodia's lawsuit against the Federal Reserve Bank of Kansas City over the denial of a master account can proceed, according to a U.S. district court ruling. The court rejected the Fed's motion to dismiss the case but also denied Custodia's request for a master account and membership with the Fed. The court said Custodia had a plausible claim for relief against the Fed, but relief under the Mandamus Act was not available. The court also said Custodia's claim that the Fed Board of Governors had weighed in on the decision was plausible.