Davis Polk partner Gabe Rosenberg was quoted in American Banker on non-traditional financial institutions seeking master accounts and the potential impact of Custodia Bank’s lawsuit against the Federal Reserve. Gabe explained that should the Fed opt not to continue fighting Custodia in court and instead grant its request, it would set a precedent for the many other non-traditional institutions that want master accounts of their own. He also noted that the Custodia suit has risen to such prominence that its resolution is likely to draw the attention of lawmakers, some of whom are already keenly focused on the master account issue and others who have broader grievances with the Fed.

Custodia ruling leaves Fed with no good options,” American Banker (October 31, 2022) (subscription required)