To curtail the political weaponization of Federal banking agencies by eliminating reputational risk as a component of the supervision of depository institutions.
Sponsors
Legislative Progress
ReportedAdditional sponsors: Mr. Williams of Texas, Mr. Schmidt, and Mr. …
Reported with an amendment, committed to the Committee of the …
Mr. Barr (for himself, Mr. Torres of New York, Mrs. …
Summary
What This Bill Does
Prohibits federal banking regulators from using reputational risk as supervisory criterion. Responds to Operation Choke Point concerns about politically targeting legal industries.
Who Benefits and How
- Legal but controversial industries protected from regulatory pressure
- Banks serving these industries face less supervisory scrutiny
- Firearms dealers, payday lenders previously targeted industries gain protection
Who Bears the Burden and How
- Banking regulators lose supervisory tool
- Consumer advocates may see reduced pressure on harmful industries
Key Provisions
- Removes reputational risk from supervisory frameworks
- Applies to all federal banking agencies and credit unions
- Cites Operation Choke Point as regulatory abuse example
- Safety and soundness remains primary regulatory focus
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Eliminates reputational risk from bank supervision to prevent politically motivated restrictions on legal businesses
Policy Domains
Legislative Strategy
"Prevent politically motivated bank derisking"
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology