Custodia Bank lost the lawsuit against the Federal Reserve over the rejection of its master account application

ChainCatcher news, Custodia Bank lost the lawsuit against the Federal Reserve's rejection of its master account application. The judge ruled that the Federal Reserve has the authority to decide whether to grant a master account. Wyoming District Judge Scott Skavdahl stated that federal law does not require the national central bank to allow every eligible depository institution access to its master account system, and the evidence provided did not indicate that the Federal Reserve Board influenced a regional branch of the Federal Reserve in rejecting its account application.