Big banks mull the unthinkable: suing the Fed

Big banks have hired one of the country’s top trial lawyers and are preparing to sue the Federal Reserve — a nearly unthinkable challenge — if sweeping new industry regulations aren’t watered down.

Eugene Scalia, the son of the former Supreme Court justice and a well-known conservative litigator, is quietly drawing up a lawsuit seeking to block the proposed rules on behalf of the Bank Policy Institute, a trade group that represents JPMorgan, Citibank, Goldman Sachs, and others, people familiar with the matter said. It would be the first time...