Litigation Update: American Bankers Association and Washington Federal v. U.S. - Podcast
Litigation Practice Group Podcast
| Sponsors: | Litigation Practice Group |
|---|
The American Bankers Association and Washington Federal, a bank holding company, have filed a suit against the United States government for reducing the amount of dividends paid to banks that own Federal Reserve stock. In the Federal Reserve Act of 1913, the Federal Reserve agreed to pay 6% annual dividends to stockholders of regional Federal Reserve Banks, but Congress decreased that amount to 2% in 2015 in the Fixing America’s Surface Transportation Act, or FAST Act, which appropriated the other 4% of would-be-dividends for highway funding. Proponents of the change argue that 6% dividends were exorbitant returns for the stock, and that banks are still guaranteed a positive return, even at 2%.
Brett Shumate and Steve Obermeier of Wiley Rein, who represent the plantiffs in this case, joined us to discuss the pending litigation.
Featuring:
- Stephen J. Obermeier, Partner, Wiley Rein LLP
- Brett A. Shumate, Partner, Wiley Rein LLP