FIRM Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
The Financial Integrity and Regulation Management Act (FIRM Act) prohibits federal banking agencies from considering ‘reputational risk’ – defined as negative publicity or public opinion – when regulating or supervising banks and credit unions. The bill aims to prevent agencies from using reputational risk as a tool for political influence and discrimination, ensuring that financial services are offered based on sound business practices and legal compliance rather than public perception. Agencies are required to remove references to reputational risk from their supervisory materials and report on their implementation of the law.
Key provisions
- Prohibits federal banking agencies from considering reputational risk in supervision.
- Defines ‘reputational risk’ as negative publicity impacting confidence, litigation, revenue, or other adverse impacts.
- Requires agencies to remove references to reputational risk from supervisory documents.
- Prevents agencies from establishing rules or regulations based on reputational risk.
- Prohibits agencies from conducting examinations or assessments based on reputational risk.
- Restricts agencies from issuing supervisory communications related to reputational risk.
- Outlaws supervisory ratings or enforcement actions based on reputational risk.
- Mandates agencies to submit reports to Congress confirming implementation and detailing policy changes.
Who is affected
- Federal banking agencies (e.g., FDIC, NCUA, CFPB)
Bill text
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Sponsors
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13 on record
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