Custodia Bank's application for a Federal Reserve master account was denied after 26 YEARS of patronage and paying millions in fees, a decision upheld by a US court. The case, which has been closely watched, involved Judge Skavdahl, who initially denied the Fed's Motion to Dismiss but later sided with the Federal Reserve in a decision on Summary Judgment. Critics, including prominent figures, have condemned the denial, arguing it undermines the credibility of the Federal Reserve and represents an extension of controversial policies like Operation Choke Point. Without a master account, Custodia faces significant operational challenges, being relegated to a 'second-class citizen' status, dependent on intermediary banks.
Federal Judge Rules Against #Custodia Bank in Master Account Dispute https://t.co/UyXFcqhd79
Custodia Bank Denied Federal Reserve Master Account by US Court "Without a master account, if Custodia is able to operate at all, it is a second-class citizen, relegated to dependency on and fealty to an intermediary bank.” https://t.co/UrOYtqy0Tf
Federal Reserve Bank of KC’s denial of @custodiabank master account application - and courts upholding that capricious decision - undermines the credibility of the institution. An un-American continuation of @ewarren’s pet “Operation Choke Point.” I know @CaitlinLong_ and great…
🚨NEW: These two opinions, made nearly a year apart, come from Judge Skavdahl in the @custodiabank vs. @federalreserve case. The first is from his opinion denying the Fed’s Motion to Dismiss. The second is from Friday’s decision on Summary Judgment where he sided with the Fed… https://t.co/bqu6dzKigN
After 26 YEARS of patronage, and paying millions in fees to them over that time, @WellsFargo debanked me without explanation. Checking, savings, credit card, personal line, non profit, business accounts…everything. I haven’t used my personal accounts for crypto purchases since… https://t.co/NzWYpqgFGF
Custodia Bank’s plea for a Federal Reserve master account was rejected. Here's why https://t.co/3B1oPrZ4SR