No one, it seems, has standing to sue the agency.
In thinking about the federal judge’s decision about the Dodd-Frank Act, discussed in the previous post, we should also keep in mind that the Fed pretty clearly violated its own statute in some of the actions taken in 2008-9. The statute of limitations for a lawsuit about this is ticking; the window will shortly close. It was well known that citizens would be denied standing to sue in order to make the Fed follow its own law. Now it appears that a federal court might even say that a bank has no standing to challenge what happened. This suggests that the Fed is not only acting lawlessly; it is acting lawlessly without being subject to any legal restraints at all. It is in the power of the Fed to decide what its underlying law says and anybody else’s opinion apparently does not matter.