March 2025

REGULATORY DEVELOPMENTS

Reputational Risk in Supervisory Oversight

On March 6 Senate Banking Committee Chairman Tim Scott (R-SC) introduced legislation that would require the Federal banking regulators to remove reputational risk from any regulations, examinations and supervisory guidance. In the press release, Senator Scott indicated that the concept had caused legitimate businesses to be debanked (i.e., not have access to banking services).

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