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aRTiCLeS
lenders filed a petition asking the Supreme Court to review the to ban the practice. The FDIC has not made any official
rule. The court has not ruled on the petition. announcements, but in a letter to Congress first reported by
Politico, Acting FDIC Chairman Travis Hill said the agency is
FDIC to Remove Reputational Risk “actively working on a rulemaking to ensure supervisors do not
from Bank Supervision criticize activities or actions on the basis of reputational risk,
which we expect to be able to issue in the near future.”
The FDIC is drafting rulemaking to remove reputational risk Some lawmakers reacted positively to the news. In a statement
from its bank supervision. The move follows the Office of the on X, House Financial Services Committee Chairman French
Comptroller of the Currency’s announcement last week that it Hill (R-Ark.) said that the FDIC has been “wasting resources”
would no longer use reputational risk in bank examinations and targeting crypto firms instead of focusing on its core mission.
guidance.
“Now, Acting Chair Travis Hill and the Trump Admin are
Lawmakers have accused regulators of using reputational risk working to right the ship,” Rep. Hill said. “The committee looks
to pressure banks into denying services to certain customers, forward to a new vision for digital assets at the FDIC.”
particularly cryptocurrency firms, and have introduced legislation
Jeff Weiler
Bachelor of Science in Business
Finance and Economics
Class of '96
northern.edu/banking
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