US Fed moves to drop reputation risk in bank reviews

The Federal Reserve has introduced a draft rule that would change how bank examiners evaluate risk, proposing an end to the use of reputation risk in supervisory decisions. This initiative follows actions taken by former President Donald Trump to address what he identified as unfair account closures by financial institutions. The proposal, now open for public comment, would prevent examiners from discouraging banks from serving customers involved in lawful activities. Instead, supervisory focus would s ...