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The Financial Integrity and Regulation Management Act (FIRM Act)
Direct Link: https://www.govinfo.gov/app/details/BILLS-119hr2702rh
Eliminating Reputational Risk in Federal Banking Agencies
The Financial Integrity and Regulation Management Act (FIRM Act) aims to curtail the political weaponization of Federal banking agencies by eliminating reputational risk as a component of the supervision of depository institutions.
Section 1: Short Title
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,2 SECTION 1. SHORT TITLE.3 This Act may be cited as the ‘‘Financial Integrity and4 Regulation Management Act’’ or the ‘‘FIRM Act’’.5
Section 2: Findings
(1) the primary objective of financial regulation8 and supervision by the Federal banking agencies is to9 promote safety and soundness of depository institu-10 tions;11 (2) all federally legal businesses and law-abiding12 citizens regardless of political ideology should have13 equal opportunity to obtain financial services and14 should not face unlawful discrimination in obtaining15 such services;16 (3) financial service providers are private enti-17 ties entitled to provide services to whichever customers18 they so choose, provided that those decisions do not19 violate the law;20 (4) financial service providers should strive to21 ensure that all business decisions are based on factors22 free from unlawful prejudice or political influence;23 (5) the use of reputational risk in supervisory24 frameworks encourages Federal banking agencies to25 VerDate Sep 11 2014 22:20 Jun 20, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6651 Sfmt 6651 E:\BILLS\H2702.RH H2702
Section 5: Prohibition
(1) establishing any rule, regulation, require-12 ment, standard, or supervisory expectation concerning13 or related to the reputational risk, or any term sub-14 stantially similar, or the management thereof, of a15 depository institution whether binding or not;16 (2) conducting any examination, assessment,17 data collection, or other supervisory exercise con-18 cerning or related to reputational risk, or any term19 substantially similar, or the management thereof, of a20 depository institution;21 (3) issuing any examination finding, super-22 visory criticism, or other supervisory or examination23 communication concerning or related to reputational24
Section 6: Reports
Not later than 180 days after the date of enactment14 of this Act, each Federal banking agency shall submit to15 the Committee on Banking, Housing, and Urban Affairs16 of the Senate and the Committee on Financial Services of17 the House of Representatives a report that—18 (1) confirms implementation of this Act; and19 (2) describes any changes made to internal poli-20 cies as a result of this Act.21
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