The American Bankers Association (ABA) and Washington Federal, a nationally chartered bank based in Seattle, are suing the United States for breach of contract.
The dispute stems from an amendment to the Federal Reserve Act (FRA) of 1913 allowing for variable dividend rates lower than the 6 percent dividends specified in contracts agreed to by Federal Reserve member banks.
Read on to learn more about the lawsuit and the amendment that allowed for lower dividend payments to member banks.