Custodia Bank Appeals Court Loss in Federal Reserve Master Account Lawsuit

Last month, a federal judge ruled that the Kansas City Federal Reserve had discretion to reject Custodia’s master account bid. According to the court, Custodia did not provide sufficient evidence to support its accusation that the Fed’s board of directors illegally relied on the Kansas City branch to reject the bank’s bid for the master account. There is a Federal Reserve and no intermediary banks needed.