,,ii ,cal5d> ,no4 #cb #aai? ,,congress  
#a/ ,session  ,s4 #hge  ,,9 ,,! ,,s5ate 
,,( ,,! ,,unit$ ,,/ates  ,m>* #f1       
#bjbe,mr4 ,scott ( ,s\? ,c>ol9a 7=      
himself1 ,mr4 ,crapo1 ,mr4 ,r\nds1 ,mr4 
,tillis1 ,mr4 ,k5n$y1 ,mr4 ,hag]ty1 ,ms4
 ,lummis1 ,mrs4 ,britt1 ,mr4 ,ricketts1 
,mr4 ,cram]1 ,mr4 ,mor5o1 ,mr4          
,mc,cormick1 & ,mr4 ,banks7 introduc$ ! 
foll[+ bill2 :i* 0 read twice & ref]r$  
to ! ,committee on ,bank+1 ,h\s+1 &     
,urban ,affairs  ,m>* #ah1 #bjbe,report$
 "u au?ority ( ! ord] ( ! ,s5ate ( ,m>* 
#ad1 #bjbe1 by ,mr4 ,scott ( ,s\?       
,c>ol9a1 ) an amendment,strike out all  
aft] ! enact+ clause & ins]t ! "p pr9t$ 
9 italic  ,a ,,bill  ,to curtail !      
political weaponization ( ,f$]al bank+  
ag5cies by elim9at+ reputational risk z 
a compon5t ( ! sup]vision ( depository  
in/itutions4  #a4 ,%ort title ,?is ,act 
may be cit$ z ! ,f9ancial ,integrity &  
,regulation ,managem5t ,act or ! ,,firm 
,act4  #b4 ,f9d+s2 purposes  7a7 ,f9d+s 
,congress f9ds t-- 7#a7 ! prim>y        

objective ( f9ancial regulation &       
sup]vision by ! ,f$]al bank+ ag5cies is 
to promote safety & s\ndness (          
depository in/itutions2  7#b7 all       
f$]ally legal bus9esses & law-abid+     
citiz5s reg>dless ( political ideology  
%\ld h equal opportunity to obta9       
f9ancial s]vices & %\ld n face unlawful 
discrim9ation 9 obta9+ su* s]vices2     
7#c7 f9ancial s]vice provid]s are       
private entities entitl$ to provide     
s]vices to :i*ev] cu/om]s !y s *oose1   
provid$ t ^? decisions d n violate !    
law2  7#d7 f9ancial s]vice provid]s %\ld
 /rive to ensure t all bus9ess decisions
 are bas$ on factors free f unlawful    
prejudice or political influ5ce2  7#e7 !
 use ( reputational risk 9 sup]visory   
frameworks enc\rages ,f$]al bank+       
ag5cies to regulate depository          
in/itutions bas$ on ! subjective view ( 
negative publicity & provides cov] = !  
ag5cies to implem5t _! own political    
ag5da unrelat$ to ! safety & s\ndness ( 
a depository in/itution2  7#f7 ,f$]al   

bank+ ag5cies h 9 fact us$ reputational 
risk to limit access ( f$]ally legal    
bus9esses & law-abid+ citiz5s to        
f9ancial s]vices 9 #bjah :5 ! ,f$]al    
,deposit ,insurance ,corporation        
ackn[l$g$ t ! ag5cy us$ reputational    
risk reviews to limit access to f9ancial
 s]vices by c]ta9 indu/ries1 commonly   
kn[n z ,op]ation ,*oke ,po9t2  7#g7     
reputational risk does n appe> 9 any    
/atute & is an unnecess>y & improp] use 
( sup]visory au?ority t does n          
contribute to ! safety & s\ndness ( !   
f9ancial sy/em4  #c4 ,def9itions ,9 ?is 
,act3 7#a7 ,depository in/itution ,! t]m
 depository in/itution-- 7,a7 has !     
mean+ giv5 ! t]m 9 section #c ( ! ,f$]al
 ,deposit ,insurance ,act 7#ab ,u4,s4,c4
 #ahac72 &  7,b7 includes an insur$     
cr$it union4  7#b7 ,f$]al bank+ ag5cy ,!
 t]m ,f$]al bank+ ag5cy-- 7,a7 has !    
mean+ giv5 ! t]m 9 section #c ( ! ,f$]al
 ,deposit ,insurance ,act 7#ab ,u4,s4,c4
 #ahac72 &  7,b7 includes-- 7i7 !       
,national ,cr$it ,union ,adm9i/ration2 &

  7ii7 ! ,bureau ( ,consum] ,f9ancial   
,protection4  7#c7 ,insur$ cr$it union  
,! t]m insur$ cr$it union has ! mean+   
giv5 ! t]m 9 section #aja ( ! ,f$]al    
,cr$it ,union ,act 7#ab ,u4,s4,c4       
#ageb74  7#d7 ,reputational risk ,! t]m 
reputational risk means ! pot5tial t    
negative publicity or negative public   
op9ion reg>d+ an in/itution's bus9ess   
practices1 :e!r true or n1 w cause a    
decl9e 9 confid5ce 9 ! in/itution or a  
decl9e 9 ! cu/om] base1 co/ly           
litigation1 or rev5ue r$uctions or      
o!rwise adv]sely impact ! depository    
in/itution4  #d4 ,removal ( reputational
 risk z a consid]ation 9 ! sup]vision ( 
depository in/itutions ,ea* ,f$]al bank+
 ag5cy %all remove f any guidance1 rule1
 exam9ation manual1 or simil> docum5t   
e/abli%$ by ! ag5cy any ref]5ce to      
reputational risk1 or any t]m           
sub/antially simil>1 reg>d+ ! sup]vision
 ( depository in/itutions su* t         
reputational risk1 or any t]m           
sub/antially simil>1 is no long] tak5   

into consid]ation by ! ,f$]al bank+     
ag5cy :5 exam9+ & sup]vis+ a depository 
in/itution4  #e4 ,prohibition ,no ,f$]al
 bank+ ag5cy may engage 9 any activity  
conc]n+ or relat$ to ! regulation1      
sup]vision1 or exam9ation1 ( !          
reputational risk1 or any t]m           
sub/antially simil>1 or ! managem5t     
!re(1 ( a depository in/itution1        
includ+-- 7#a7 e/abli%+ any rule1       
regulation1 requirem5t1 /&>d1 or        
sup]visory expectation conc]n+ or relat$
 to ! reputational risk1 or any t]m     
sub/antially simil>1 or ! managem5t     
!re(1 ( a depository in/itution :e!r    
b9d+ or n2  7#b7 conduct+ any           
exam9ation1 assessm5t1 data collection1 
or o!r sup]visory ex]cise conc]n+ or    
relat$ to reputational risk1 or any t]m 
sub/antially simil>1 or ! managem5t     
!re(1 ( a depository in/itution2  7#c7  
issu+ any exam9ation f9d+1 sup]visory   
criticism1 or o!r sup]visory or         
exam9ation communication conc]n+ or     
relat$ to reputational risk1 or any t]m 

sub/antially simil>1 or ! managem5t     
!re(1 ( a depository in/itution2  7#d7  
mak+ any sup]visory rat+s decision or   
det]m9ation t is bas$1 9 :ole or 9 "p1  
on any matt] conc]n+ or relat$ to       
reputational risk1 or any t]m           
sub/antially simil>1 or ! managem5t     
!re(1 ( a depository in/itution2 &  7#e7
 tak+ any =mal or in=mal en=cem5t action
 t is bas$1 9 :ole or 9 "p1 on any matt]
 conc]n+ or relat$ to reputational risk1
 or any t]m sub/antially simil>1 or !   
managem5t !re(1 ( a depository          
in/itution4  #f4 ,reports ,n lat] ?an   
#ahj days aft] ! date ( enactm5t ( ?is  
,act1 ea* ,f$]al bank+ ag5cy %all submit
 to ! ,committee on ,bank+1 ,h\s+1 &    
,urban ,affairs ( ! ,s5ate & !          
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives a report t--    
7#a7 confirms implem5tation ( ?is ,act2 
&  7#b7 describes any *anges made to    
int]nal policies z a result ( ?is ,act4 
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,f9ancial ,integrity & ,regulation    

,managem5t ,act or ! ,,firm ,act4  #b4  
,f9d+s ,congress f9ds t-- 7#a7 ! prim>y 
objective ( f9ancial regulation &       
sup]vision by ! ,f$]al bank+ ag5cies is 
to promote ! safety & s\ndness (        
depository in/itutions2  7#b7 all       
f$]ally legal bus9esses & law-abid+     
citiz5s reg>dless ( political ideology  
%\ld h equal opportunity to obta9       
f9ancial s]vices & %\ld n face unlawful 
discrim9ation 9 obta9+ su* s]vices2     
7#c7 f9ancial s]vice provid]s are       
private entities entitl$ to provide     
s]vices to :i*ev] cu/om]s !y s *oose1   
provid$ t ^? decisions d n violate !    
law2  7#d7 f9ancial s]vice provid]s %\ld
 /rive to ensure t all bus9ess decisions
 are bas$ on factors free f unlawful    
prejudice or political influ5ce2  7#e7 !
 use ( reputational risk 9 sup]visory   
frameworks enc\rages ,f$]al bank+       
ag5cies to regulate depository          
in/itutions bas$ on ! subjective view ( 
negative publicity & provides cov] = !  
ag5cies to implem5t _! own political    

ag5da unrelat$ to ! safety & s\ndness ( 
a depository in/itution2  7#f7 ,f$]al   
bank+ ag5cies h 9 fact us$ reputational 
risk to limit access ( f$]ally legal    
bus9esses & law-abid+ citiz5s to        
f9ancial s]vices 9 #bjah :5 ! ,f$]al    
,deposit ,insurance ,corporation        
ackn[l$g$ t ! ag5cy us$ reputational    
risk reviews to limit access to f9ancial
 s]vices by c]ta9 indu/ries1 commonly   
kn[n z ,op]ation ,*oke ,po9t2 &  7#g7   
reputational risk does n appe> 9 any    
/atute & is an unnecess>y & improp] use 
( sup]visory au?ority t does n          
contribute to ! safety & s\ndness ( !   
f9ancial sy/em4  #c4 ,def9itions ,9 ?is 
,act3 7#a7 ,depository in/itution ,! t]m
 depository in/itution-- 7,a7 has !     
mean+ giv5 ! t]m 9 section #c ( ! ,f$]al
 ,deposit ,insurance ,act 7#ab ,u4,s4,c4
 #ahac72 &  7,b7 includes an insur$     
cr$it union4  7#b7 ,f$]al bank+ ag5cy ,!
 t]m ,f$]al bank+ ag5cy-- 7,a7 has !    
mean+ giv5 ! t]m 9 section #c ( ! ,f$]al
 ,deposit ,insurance ,act 7#ab ,u4,s4,c4

 #ahac72 &  7,b7 includes-- 7i7 !       
,national ,cr$it ,union ,adm9i/ration2 &
  7ii7 ! ,bureau ( ,consum] ,f9ancial   
,protection4  7#c7 ,insur$ cr$it union  
,! t]m insur$ cr$it union has ! mean+   
giv5 ! t]m 9 section #aja ( ! ,f$]al    
,cr$it ,union ,act 7#ab ,u4,s4,c4       
#ageb74  7#d7 ,reputational risk ,! t]m 
reputational risk means ! pot5tial t    
negative publicity or negative public   
op9ion reg>d+ an in/itution's bus9ess   
practices1 :e!r true or n1 w cause a    
decl9e 9 confid5ce 9 ! in/itution or a  
decl9e 9 ! cu/om] base1 co/ly           
litigation1 or rev5ue r$uctions or      
o!rwise adv]sely impact ! depository    
in/itution4  #d4 ,removal ( reputational
 risk z a consid]ation 9 ! sup]vision ( 
depository in/itutions ,ea* ,f$]al bank+
 ag5cy %all remove f any guidance1 rule1
 exam9ation manual1 or simil> docum5t   
e/abli%$ by ! ag5cy any ref]5ce to      
reputational risk1 or any t]m           
sub/antially simil>1 reg>d+ ! sup]vision
 ( depository in/itutions su* t         

reputational risk1 or any t]m           
sub/antially simil>1 is no long] tak5   
into consid]ation by ! ,f$]al bank+     
ag5cy :5 exam9+ & sup]vis+ a depository 
in/itution4  #e4 ,prohibition ,no ,f$]al
 bank+ ag5cy may engage 9 any activity  
conc]n+ or relat$ to ! regulation1      
sup]vision1 or exam9ation1 ( !          
reputational risk1 or any t]m           
sub/antially simil>1 or ! managem5t     
!re(1 ( a depository in/itution1 includ+
 by-- 7#a7 e/abli%+ any rule1           
regulation1 requirem5t1 /&>d1 or        
sup]visory expectation conc]n+ or relat$
 to ! reputational risk1 or any t]m     
sub/antially simil>1 or ! managem5t     
!re(1 ( a depository in/itution :e!r    
b9d+ or n2  7#b7 conduct+ any           
exam9ation1 assessm5t1 data collection1 
or o!r sup]visory ex]cise conc]n+ or    
relat$ to reputational risk1 or any t]m 
sub/antially simil>1 or ! managem5t     
!re(1 ( a depository in/itution2  7#c7  
issu+ any exam9ation f9d+1 sup]visory   
criticism1 or o!r sup]visory or         

exam9ation communication conc]n+ or     
relat$ to reputational risk1 or any t]m 
sub/antially simil>1 or ! managem5t     
!re(1 ( a depository in/itution2  7#d7  
mak+ any sup]visory rat+s decision or   
det]m9ation t is bas$1 9 :ole or 9 "p1  
on any matt] conc]n+ or relat$ to       
reputational risk1 or any t]m           
sub/antially simil>1 or ! managem5t     
!re(1 ( a depository in/itution2 &  7#e7
 tak+ any =mal or in=mal en=cem5t action
 t is bas$1 9 :ole or 9 "p1 on any matt]
 conc]n+ or relat$ to reputational risk1
 or any t]m sub/antially simil>1 or !   
managem5t !re(1 ( a depository          
in/itution4  #f4 ,tak+ acc\nt (         
in/itutions ) l[ op]ational risk  7a7   
,tailor+ regulation to bus9ess model &  
risk  7#a7 ,def9itions ,9 ?is           
subsection-- 7,a7 ! t]m ,f$]al f9ancial 
in/itutions regulatory ag5cy means !    
,(fice ( ! ,comptroll] ( ! ,curr5cy1 !  
,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve    
,sy/em1 ! ,f$]al ,deposit ,insurance    
,corporation1 ! ,national ,cr$it ,union 

,adm9i/ration1 & ! ,bureau ( ,consum]   
,f9ancial ,protection2 &  7,b7 ! t]m    
regulatory action-- 7i7 means any       
propos$1 int]im1 or f9al rule or        
regulation2 &  7ii7 does n include any  
action tak5 by a ,f$]al f9ancial        
in/itutions regulatory ag5cy t is solely
 applicable to an individual in/itution1
 includ+ an en=cem5t action or ord]4    
7#b7 ,consid]ation & tailor+ ,= any     
regulatory action occurr+ aft] ! date ( 
enactm5t ( ?is ,act1 ea* ,f$]al f9ancial
 in/itutions regulatory ag5cy %all--    
7,a7 take into consid]ation ! risk      
pr(ile & bus9ess models ( ea* type (    
in/itution or class ( in/itutions       
subject to ! regulatory action2 &  7,b7 
tailor ! regulatory action applicable to
 an in/itution1 or type ( in/itution1 9 
a mann] t limits ! regulatory impact1   
includ+ co/1 human res\rce allocation1 &
 o!r burd5s1 on ! in/itution or type (  
in/itution z is appropriate = ! risk    
pr(ile & bus9ess model involv$4  7#c7   
,factors ,to consid] ,9 c>ry+ out !     

requirem5ts ( p>agraph 7#b71 ea* ,f$]al 
f9ancial in/itutions regulatory ag5cy   
%all consid]-- 7,a7 ! aggregate impact (
 all applicable regulatory actions on ! 
ability ( in/itutions to flexibly s]ve  
_! cu/om]s & local m>kets aft] ! date ( 
enactm5t ( ?is ,act2  7,b7 ! pot5tial   
impact t ef=ts to implem5t ! applicable 
regulatory action & ?ird-p>ty s]vice    
provid] actions may "w to und]cut ef=ts 
to tailor ! regulatory action describ$ 9
 p>agraph 7#b77;,b72 &  7,c7 ! /atutory 
provision au?oriz+ ! applicable         
regulatory action1 ! congressional int5t
 ) respect to ! /atutory provision1 & ! 
und]ly+ policy objectives ( ! regulatory
 action4  7#d7 ,notice ( propos$ & f9al 
rulemak+ ,ea* ,f$]al f9ancial           
in/itutions regulatory ag5cy %all       
disclose & docum5t 9 e notice ( propos$ 
rulemak+ & 9 e f9al rulemak+ = a        
regulatory action h[ ! ag5cy has appli$ 
p>agraphs 7#b7 & 7#c74  7#e7 ,limit$    
look-,back application  7,a7 ,9 g5]al   
,ea* ,f$]al f9ancial in/itutions        

regulatory ag5cy %all-- 7i7 conduct a   
review ( all regulations issu$ 9 f9al =m
 pursuant to /atutes enact$ dur+ ! p]iod
 beg9n+ on ! date t is #g ye>s be=e !   
date on :i* ?is ,act is introduc$ 9 !   
,s5ate & end+ on ! date ( enactm5t ( ?is
 ,act2 &  7ii7 apply ! requirem5ts ( ?is
 subsection to ! regulations describ$ 9 
clause 7i74  7,b7 ,revision ,any        
regulation revis$ "u subp>agraph 7,a7   
%all be revis$ n lat] ?an #c ye>s aft] !
 date ( enactm5t ( ?is ,act4  7#f7      
,reports to ,congress ,n lat] ?an #a ye>
 aft] ! date ( enactm5t ( ?is ,act1 &   
annually !reaft]1 ea* ,f$]al f9ancial   
in/itutions regulatory ag5cy %all submit
 to ! ,committee on ,bank+1 ,h\s+1 &    
,urban ,affairs ( ! ,s5ate & !          
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives a report on !   
specific actions tak5 to tailor !       
regulatory actions ( ! ,f$]al f9ancial  
in/itutions regulatory ag5cy pursuant to
 ! requirem5ts ( ?is subsection4  7b7   
,%ort-=m call reports = all banks       

eligible = ! community bank lev]age     
ratio ,! appropriate ,f$]al bank+       
ag5cies1 z def9$ 9 section #c ( ! ,f$]al
 ,deposit ,insurance ,act 7#ab ,u4,s4,c4
 #ahac71 %all promulgate regulations    
e/abli%+ a r$uc$ report+ requirem5t =   
all banks eligible = ! ,community ,bank 
,lev]age ,ratio1 z def9$ 9 section      
#bja7;a7 ( ! ,economic ,gr[?1           
,regulatory ,relief1 & ,consum]         
,protection ,act 7#ab ,u4,s4,c4 #ecga   
note71 :5 mak+ ! fir/ & ?ird report (   
condition ( a ye>1 z requir$ by section 
#g7;a7 ( ! ,f$]al ,deposit ,insurance   
,act 7#ab ,u4,s4,c4 #ahag7;a774  7c7    
,report to ,congress on mod]nization (  
sup]vision ,n lat] ?an #ah mon?s aft] ! 
date ( enactm5t ( ?is ,act1 !           
appropriate ,f$]al bank+ ag5cies1 z     
def9$ 9 section #c ( ! ,f$]al ,deposit  
,insurance ,act 7#ab ,u4,s4,c4 #ahac71 9
 consultation ) ,/ate bank sup]visors1  
%all submit to ! ,committee on ,bank+1  
,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! 
,committee on ,f9ancial ,s]vices ( !    

,h\se ( ,repres5tatives a report on !   
mod]nization ( bank sup]vision1 includ+ 
! foll[+ factors3 7#a7 ,*ang+ bank      
bus9ess models4  7#b7 ,exam9] work=ce & 
tra9+4  7#c7 ,! /ructure ( sup]visory   
activities )9 bank+ ag5cies4  7#d7      
,improv+ bank-sup]visor communication & 
collaboration4  7#e7 ,! use ( sup]visory
 te*nology4  7#f7 ,sup]visory factors   
uniquely applicable to community banks4 
7#g7 ,*anges 9 /atutes necess>y to      
a*ieve m effective sup]vision4  #g4     
,reports ,n lat] ?an #ahj days aft] !   
date ( enactm5t ( ?is ,act1 ea* ,f$]al  
bank+ ag5cy %all submit to ! ,committee 
on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! 
,s5ate & ! ,committee on ,f9ancial      
,s]vices ( ! ,h\se ( ,repres5tatives a  
report t-- 7#a7 confirms implem5tation (
 ?is ,act2 &  7#b7 describes any *anges 
made to int]nal policies z a result (   
?is ,act4  ,m>* #ah1 #bjbe,report$ ) an 
am5dm5t