Lawmakers introduce House version of FIRM Act
Reps. Andy Barr (R-Ky.) and Ritchie Torres (D-N.Y.) announced today they have introduced the House version of the Financial Integrity and Regulation Management Act, which would remove reputational risk as a component in bank supervision. The Senate version of the bill is sponsored by Senate Banking Committee Chairman Tim Scott (R-S.C.).
In a statement, Barr and Torres said the FIRM Act ensures that banking supervision remains focused on legitimate financial risks, “not political agendas.” The American Bankers Association supports both the House and Senate versions of the bill.
“We applaud the introduction of the FIRM Act in the House and thank Reps. Barr and Torres for their leadership on this issue,” ABA President and CEO Rob Nichols said. “The FIRM Act would remove ‘reputational risk’ as a component of federal supervision when determining a financial institution’s safety and soundness, ensuring banks have the flexibility they need to serve their communities without political interference. We look forward to working with Rep. Barr and other stakeholders to move this commonsense bill forward to protect bank customers from regulatory overreach.”