Bill would bar bank regulators from citing "reputational risk"
Placed on the calendarH.R. 2702Latest action
Sponsor: Andy Barr · Representative · KY
AIDecoded by AI · checked against the recordRead the official text
Official title: FIRM Act
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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The FIRM Act would ban federal banking regulators from using reputational risk in bank exams or enforcement.
40-second read · 4 questions answered below
What does this do?
The FIRM Act would stop banking regulators from using "reputational risk" when examining or supervising banks and credit unions. Agencies would have to strip references to reputational risk from rules, guidance, and exam materials, and could not issue findings, ratings, or enforcement actions based on it. Each agency must report to Congress within 180 days confirming compliance.
Who does it affect?
Affects the FDIC, Federal Reserve, OCC, National Credit Union Administration, and CFPB, along with banks, credit unions, and their customers.
Why does it matter?
Supporters say it would prevent regulators from pressuring banks to cut ties with legal but controversial businesses, as in "Operation Choke Point." Regulators could still examine banks for financial safety, fraud, or other legal compliance issues.
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Where does it stand?
- IntroducedApr 8, 2025
- House committee
- House voteYou are here · Jun 20, 2025
- Senate
- The president's desk
Right now: it was placed on the , and the official record shows no floor action on it since. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Placed on the Union Calendar, Calendar No. 131.