H.R. 2702: Financial Integrity and Regulation Management Act
Bill Overview
This bill, titled theFinancial Integrity and Regulation Management Actor the "FIRM Act," aims to change the way federal banking agencies assess and supervise depository institutions, such as banks and credit unions.
Key Objectives
The primary objectives highlighted in the bill include:- Promoting the safety and soundness of depository institutions.
- Ensuring that all federally legal businesses and law-abiding citizens can access financial services without facing discrimination.
- Allowing financial service providers to choose their customers without unlawful prejudice or political influence.
Concerns Addressed
The bill expresses concern that the current practice of considering reputational risk—the potential negative public perception of a financial institution's actions—during regulatory supervision is problematic. It argues that:- Reputational risk is subjective and can lead to unfair regulation based on public relations concerns rather than the actual financial health of an institution.
- Historically, federal banking agencies have used reputational risk to limit access to financial services, impacting legally operating businesses.
- This practice does not contribute to the overall safety and soundness of the financial system.
Proposed Changes
The bill proposes the following changes:- Federal banking agencies must eliminate references to reputational risk in their regulatory guidance and examination processes.
- No federal banking agency can consider reputational risk when supervising or examining depository institutions. This includes various activities such as rule-making, assessments, and enforcement actions.
Implementation and Reporting
If enacted, the bill requires each federal banking agency to report back to Congress within 180 days to confirm that the provisions of the bill have been implemented and to detail any changes made to their internal policies as a consequence.Relevant Companies
None found.This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
17 bill sponsors
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TrackAndy Barr
Sponsor
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TrackTroy Downing
Co-Sponsor
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TrackScott Fitzgerald
Co-Sponsor
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TrackGlenn Grothman
Co-Sponsor
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TrackDoug LaMalfa
Co-Sponsor
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TrackBarry Loudermilk
Co-Sponsor
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TrackFrank D. Lucas
Co-Sponsor
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TrackLisa C. McClain
Co-Sponsor
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TrackMark Messmer
Co-Sponsor
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TrackTim Moore
Co-Sponsor
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TrackAndrew Ogles
Co-Sponsor
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TrackJohn W. Rose
Co-Sponsor
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TrackPete Sessions
Co-Sponsor
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TrackMarlin A. Stutzman
Co-Sponsor
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TrackWilliam R. Timmons IV
Co-Sponsor
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TrackRitchie Torres
Co-Sponsor
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TrackAnn Wagner
Co-Sponsor
Actions
2 actions
| Date | Action |
|---|---|
| Apr. 08, 2025 | Introduced in House |
| Apr. 08, 2025 | Referred to the House Committee on Financial Services. |
Corporate Lobbying
1 company lobbying
