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The Wall Street Journal: New bank sues to open an account with New York Fed

A new financial institution is suing the Federal Reserve Bank of New York, announcing it's unfairly combating the firm from pursuing a unique business strategy.

TNB USA Inc. — run through a former most sensible New York Fed staffer — said its primary business process shall be to enable massive institutional money-market traders to earn upper interest rates from the Federal Reserve than they may in a different way, in accordance a complaint filed in federal courtroom Friday. Such traders include pension budget, companies and other entities managing massive sums of money.

But first TNB, based in Connecticut, must open an interest-bearing account on the New York Fed, like those held through many massive banks.

The Fed hasn’t granted or rejected TNB’s request, a process begun in August 2017, or supplied a formal explanation why for now not appearing. TNB alleges in its courtroom submitting that New York Fed officers had been ready to open the account, however the Fed’s Washington-based board of governors board blocked it because of unspecified “policy issues.” The plaintiffs said in the lawsuit they attributed the decision to the board chairman, Jerome Powell, in accordance with their conversations with New York Fed officers.

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