HR2702119th CongressWALLET

FIRM Act

Sponsored By: Representative Barr

In Committee

Summary

Removes "reputational risk" from federal bank supervision. This bill would bar Federal banking agencies from using reputational risk as a basis for rules, exams, ratings, or enforcement against depository institutions.

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  • Banks and credit unions: Would no longer face supervision or enforcement actions that rely on reputational risk. Agencies must remove references to reputational risk from guidance, rules, and examination manuals.
  • Federal banking agencies: Would be prohibited from any activity related to reputational risk in regulation, supervision, or examination. Each agency must report to the House and Senate banking committees within 180 days after enactment describing the policy changes.
  • Consumers, communities, and businesses: The bill aims to reduce instances where reputational concerns limit access to financial services. That seeks to protect people or groups who were denied banking for reputational reasons.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Limit bank oversight for 'reputational risk'

This bill would bar federal banking agencies from using "reputational risk" when they supervise banks. Agencies would not be able to set rules, run exams, issue ratings, or take enforcement based on it. They would also need to remove that term from their guidance and manuals. Agencies would report to Congress within 180 days on how they carried this out. If enacted, banks could face fewer checks tied to public image, which could have mixed effects for customers.

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Sponsors & CoSponsors

Sponsor

Barr

KY • R

Cosponsors

  • Torres (NY)

    NY • D

    Sponsored 4/8/2025

  • McClain

    MI • R

    Sponsored 4/8/2025

  • Lucas

    OK • R

    Sponsored 4/8/2025

  • Loudermilk

    GA • R

    Sponsored 4/8/2025

  • Rose

    TN • R

    Sponsored 4/8/2025

  • Wagner

    MO • R

    Sponsored 4/8/2025

  • Stutzman

    IN • R

    Sponsored 4/8/2025

  • Timmons

    SC • R

    Sponsored 4/8/2025

  • Moore (NC)

    NC • R

    Sponsored 4/8/2025

  • Messmer

    IN • R

    Sponsored 4/8/2025

  • Fitzgerald

    WI • R

    Sponsored 4/8/2025

  • Ogles

    TN • R

    Sponsored 4/8/2025

  • Downing

    MT • R

    Sponsored 4/8/2025

  • Sessions

    TX • R

    Sponsored 4/8/2025

  • LaMalfa

    CA • R

    Sponsored 4/8/2025

  • Grothman

    WI • R

    Sponsored 4/8/2025

  • Williams (TX)

    TX • R

    Sponsored 5/5/2025

  • Schmidt

    KS • R

    Sponsored 5/5/2025

  • Garbarino

    NY • R

    Sponsored 5/19/2025

Roll Call Votes

No roll call votes available for this bill.

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