Bill > HR2702

This bill, known as the Financial Integrity and Regulation Management Act (FIRM Act), aims to prohibit federal banking agencies from using "reputational risk" as a factor in supervising and examining depository institutions. The bill defines reputational risk as potential negative publicity that could harm an institution's reputation or business, and argues that this concept has been used inappropriately to discriminate against certain legal businesses. The legislation requires federal banking agencies, including the National Credit Union Administration and the Bureau of Consumer Financial Protection, to remove all references to reputational risk from their guidance, examination manuals, and other documents. The bill strictly forbids these agencies from considering reputational risk when conducting examinations, making supervisory ratings, or taking enforcement actions against depository institutions. Additionally, the agencies must submit a report to congressional committees within 180 days of the act's enactment, confirming their implementation of the law and detailing any internal policy changes. The underlying motivation for the bill appears to be preventing federal banking agencies from using subjective criteria to limit financial services access to businesses based on political or ideological grounds, referencing a previous incident known as "Operation Choke Point" where certain industries were allegedly disadvantaged.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/2702/all-info