Custodia Bank loses lawsuit against Fed over rejection of master account application

Custodia Bank lost its lawsuit against the Federal Reserve for refusing its application for a master account. The judge ruled that the Federal Reserve has the right to decide whether to grant a master account. Judge Scott Skavdahl of Wyoming stated that federal law does not require the central bank to allow every qualified deposit institution to enter its master account system, and the evidence provided does not indicate that the Federal Reserve Board influenced a regional branch's decision to reject their account application.