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
ReportedReported under authority of the order of the Senate of …
Mr. Scott of South Carolina (for himself, Mr. Crapo, Mr. …
Summary
What This Bill Does
Prohibits federal banking regulators from using reputational risk as a supervisory criterion. Responds to Operation Choke Point concerns where regulators allegedly targeted legal but politically disfavored industries.
Who Benefits and How
- Legal but controversial industries (firearms, payday lenders) gain protection from regulatory pressure
- Banks serving these industries face reduced regulatory scrutiny for reputational concerns
- Businesses previously targeted by Operation Choke Point get regulatory protection
Who Bears the Burden and How
- Federal banking agencies lose supervisory tool used to address reputation-related risks
- Bank regulators must revise examination manuals and training
- Consumer advocates may see reduced ability to pressure harmful industries
Key Provisions
- Removes reputational risk from all supervisory frameworks
- Cites Operation Choke Point as example of regulatory abuse
- Applies to all federal banking agencies and credit unions
- Affirms banks can choose customers but must not face political pressure
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 through regulatory reform"
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
Key Definitions
Terms defined in this bill
As defined in FDIA plus insured credit unions
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