Financial Integrity and Regulation Management Act aims to eliminate reputational risk as a supervisory consideration for depository institutions.
The Financial Integrity and Regulation Management Act, or FIRM Act, seeks to prevent Federal banking agencies from considering reputational risk in their supervision of depository institutions. It defines reputational risk as the potential for negative publicity to harm an institution's standing or finances. The bill prohibits agencies from regulating, supervising, or examining based on reputational risk, including issuing findings or ratings related to it. Federal banking agencies must also remove any references to reputational risk from their documents.
Included in complete analysis
- Overview
- Core Provisions
- Implementation
- Impact
- Legal Framework
- Critical Issues
See what it does, who it affects, and the critical issues in plain language. Free, 30 seconds.