FIRM Act

This bill stops federal banking agencies from using something called "reputational risk" when they oversee or examine banks and credit unions. Reputational risk means the chance that bad publicity or public attention could hurt a bank by lowering public trust, causing lawsuits, or reducing its income. Under this bill, banking agencies would no longer be allowed to consider that kind of risk when making decisions about regulating these institutions. The agencies would also be required to report on how they are following this new rule.

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