,,ii #aaith ,,congress #ast ,session ,s4 #hge ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #f1 #bjbe ,mr4 ,scott of ,south ,carolina 7for himself1 ,mr4 ,crapo1 ,mr4 ,rounds1 ,mr4 ,tillis1 ,mr4 ,kennedy1 ,mr4 ,hagerty1 ,ms4 ,lummis1 ,mrs4 ,britt1 ,mr4 ,ricketts1 ,mr4 ,cramer1 ,mr4 ,moreno1 ,mr4 ,mc,cormick1 and ,mr4 ,banks7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to curtail the political weaponization of ,federal banking agencies by eliminating reputational risk as a component of the supervision of depository institutions4 #a4 ,short title ,this ,act may be cited as the ,financial ,integrity and ,regulation ,management ,act or the ,,firm ,act4 #b4 ,findings2 purposes 7a7 ,findings ,congress finds that-- 7#a7 the primary objective of financial regulation and supervision by the ,federal banking agencies is to promote safety and soundness of depository institutions2 7#b7 all federally legal businesses and law-abiding citizens regardless of political ideology should have equal opportunity to obtain financial services and should not face unlawful discrimination in obtaining such services2 7#c7 financial service providers are private entities entitled to provide services to whichever customers they so choose1 provided that those decisions do not violate the law2 7#d7 financial service providers should strive to ensure that all business decisions are based on factors free from unlawful prejudice or political influence2 7#e7 the use of reputational risk in supervisory frameworks encourages ,federal banking agencies to regulate depository institutions based on the subjective view of negative publicity and provides cover for the agencies to implement their own political agenda unrelated to the safety and soundness of a depository institution2 7#f7 ,federal banking agencies have in fact used reputational risk to limit access of federally legal businesses and law-abiding citizens to financial services in #bjah when the ,federal ,deposit ,insurance ,corporation acknowledged that the agency used reputational risk reviews to limit access to financial services by certain industries1 commonly known as ,operation ,choke ,point2 and 7#g7 reputational risk does not appear in any statute and is an unnecessary and improper use of supervisory authority that does not contribute to the safety and soundness of the financial system4 #c4 ,definitions ,in this ,act3 7#a7 ,depository institution ,the term depository institution-- 7,a7 has the meaning given the term in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,b7 includes an insured credit union4 7#b7 ,federal banking agency ,the term ,federal banking agency-- 7,a7 has the meaning given the term in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,b7 includes-- 7i7 the ,national ,credit ,union ,administration2 and 7ii7 the ,bureau of ,consumer ,financial ,protection4 7#c7 ,insured credit union ,the term insured credit union has the meaning given the term in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#d7 ,reputational risk ,the term reputational risk means the potential that negative publicity or negative public opinion regarding an institution's business practices1 whether true or not1 will cause a decline in confidence in the institution or a decline in the customer base1 costly litigation1 or revenue reductions or otherwise adversely impact the depository institution4 #d4 ,removal of reputational risk as a consideration in the supervision of depository institutions ,each ,federal banking agency shall remove from any guidance1 rule1 examination manual1 or similar document established by the agency any reference to reputational risk1 or any term substantially similar1 regarding the supervision of depository institutions such that reputational risk1 or any term substantially similar1 is no longer taken into consideration by the ,federal banking agency when examining and supervising a depository institution4 #e4 ,prohibition ,no ,federal banking agency may engage in any activity concerning or related to the regulation1 supervision1 or examination1 of the reputational risk1 or any term substantially similar1 or the management thereof1 of a depository institution1 including-- 7#a7 establishing any rule1 regulation1 requirement1 standard1 or supervisory expectation concerning or related to the reputational risk1 or any term substantially similar1 or the management thereof1 of a depository institution whether binding or not2 7#b7 conducting any examination1 assessment1 data collection1 or other supervisory exercise concerning or related to reputational risk1 or any term substantially similar1 or the management thereof1 of a depository institution2 7#c7 issuing any examination finding1 supervisory criticism1 or other supervisory or examination communication concerning or related to reputational risk1 or any term substantially similar1 or the management thereof1 of a depository institution2 7#d7 making any supervisory ratings decision or determination that is based1 in whole or in part1 on any matter concerning or related to reputational risk1 or any term substantially similar1 or the management thereof1 of a depository institution2 and 7#e7 taking any formal or informal enforcement action that is based1 in whole or in part1 on any matter concerning or related to reputational risk1 or any term substantially similar1 or the management thereof1 of a depository institution4 #f4 ,reports ,not later than #ahj days after the date of enactment of this ,act1 each ,federal banking agency shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report that-- 7#a7 confirms implementation of this ,act2 and 7#b7 describes any changes made to internal policies as a result of this ,act4