The Fed started wimping out after it lost the 1987 Dimension Financial case. (Ironically enough, this was one of the first applications of Chevron, in which the Supreme Court said "demand deposit" unambiguously means "demand deposit," not "transaction account.") Since then, it has almost never been willing to go to court as a plaintiff. It will show up as a defendant.
I include that case as a central one in my banking textbook. Talk about overlearning lessons from history. It's unilateral disarmament - the Fed won't use the tools in its toolkit but invites others to use them.
The Fed started wimping out after it lost the 1987 Dimension Financial case. (Ironically enough, this was one of the first applications of Chevron, in which the Supreme Court said "demand deposit" unambiguously means "demand deposit," not "transaction account.") Since then, it has almost never been willing to go to court as a plaintiff. It will show up as a defendant.
I include that case as a central one in my banking textbook. Talk about overlearning lessons from history. It's unilateral disarmament - the Fed won't use the tools in its toolkit but invites others to use them.