tl;dr
Custodia Bank has filed an opening brief in the 10th Circuit Court of Appeals, challenging a Wyoming judge’s decision granting the Federal Reserve the power to deny it a master account. The brief argues for the revocation of the denial and emphasizes violations of the dual banking system and the Mon...
Custodia Bank has filed an opening brief in the 10th Circuit Court of Appeals, challenging a Wyoming judge’s decision granting the Federal Reserve the power to deny it a master account. The brief argues for the revocation of the denial and emphasizes violations of the dual banking system and the Monetary Control Act. It also asserts that the Fed's actions should not be immune from judicial review and highlights the historical significance of the dual banking system.
Additionally, the brief discusses Wyoming's 2019 statute allowing for Special Purpose Depository Institution (SPDI) charters, emphasizing that the Fed's refusal to grant a master account to an eligible SPDI like Custodia is discriminatory. The brief further argues that the MCA required the Fed to provide all depository institutions direct access to its payment system services on the same terms as member banks.
Custodia Bank CEO Caitlin Long has hired two veteran Supreme Court attorneys for the lawsuit against the Fed. Their arguments are focused on several key points, including violation of the dual banking system. Custodia Bank’s lawyers argue that the Fed’s authority to deny master accounts to state-chartered banks undermines the dual banking system.
In addition, Custodia’s lawyers argue that the Fed’s power to discriminate against state-chartered banks may violate the Monetary Control Act (MCA). The MCA ensures fair access for state-chartered banks to the Fed’s services. In addition, they pointed to Congress’s mention of the word “shall” in the MCA, which states that “all Federal Reserve bank services…shall be available to non-member depository institutions.”
Furthermore, Custodia’s brief asserts that there is no basis for the Fed’s actions to be immune from judicial review. They argue that mandamus relief is available against the Federal Reserve Bank of Kansas City (FRBKC). Moreover, they state that the Administrative Procedure Act provides a remedy against the Board when it defies a congressional command.
In addition, the brief explains the historical significance of the dual banking system. It highlights that this system has survived for over 150 years and continues to be durable and responsive to the economy. Hence, the dual banking system respects distinct and equal state and federal roles.
Wyoming enacted a statute in 2019 to allow qualified applicants to obtain a Special Purpose Depository Institution (SPDI) charter, Custodia’s brief highlights. SPDIs take deposits, facilitate U.S. dollar payments, and provide digital asset custody services. Moreover, they do not lend and must comply with all applicable federal laws. This is central to the Custodia Bank case because the Fed’s refusal to grant a master account to an eligible SPDI like Custodia is discriminatory.
Furthermore, the brief explains that the MCA was enacted to address payment access and unequal treatment of member and non-member banks. The MCA required the Fed to provide all depository institutions direct access to its payment system services on the same terms as member banks. In addition, Custodia’s lawyers argue that Section 248a(c)(2) of the MCA sets forth a fee schedule for Fed services and requires these services to be available to nonmember depository institutions.
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Mitsubishi UFJ Financial Group Inc ADR
Mitsubishi UFJ Financial Group, Inc., a banking holding company, offers financial services in Japan, the United States, and Asia / Oceania. The company is headquartered in Tokyo, Japan.
Industry: FINANCE
Sector: COMMERCIAL BANKS
Symbol: NEC
Market Cap: 120.16B
Price-Earnings Ratio: 13.14
Dividend Yield: 0.78%
52-Week High: 543.96
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Shares Outstanding: 6.505B
Public Float: 11.73B
Beta: -0.234
EPS: 0.006
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Apple Inc. is an American multinational technology company that specializes in consumer electronics, computer software, and online services. As of 2021, Apple is the world's largest technology company by revenue, totaling $274.5 billion in 2020, and the world's most valuable company since January 2021. Apple is also the world's fourth-largest PC vendor by unit sales and the fourth-largest smartphone manufacturer. It is one of the Big Five American information technology companies, along with Amazon, Google, Microsoft, and Facebook.
Industry: Technology
Sub-industries: Electronic, Computers
Market Cap: 320.59B
PE Ratio: 27.2
EPS: 32.46
ROE: 0.96
Dividend Yield: 6.44
Debt to Equity: 24.54
Current Ratio: 0.263
Revenue: 381.62B
Gross Margin: 195.36
Operating Margin: 0.007
Net Margin: -0.043