The Federal Reserve announced on June 23 that it will no longer factor “reputation risk” into its bank examinations, a move aligned with efforts by Republican lawmakers and the Trump administration to combat what they describe as politically motivated financial discrimination—particularly debanking.
The central bank said in a statement it has begun reviewing and revising its supervisory materials to remove references to reputation risk, replacing them where appropriate with more specific discussions of financial risk.
In its June 23 announcement, the Fed said it has started the process of reviewing references to reputation risk in its supervisory materials and replacing them, when appropriate, with more specific discussions of financial risk….