H.R. 2702 · On the floor · Finance and Financial Sector

FIRM Act

Sponsor: Andy Barr (R-KY)

What it does

• Prohibit federal banking agencies from considering reputational risk when regulating, examining, or supervising depository institutions and credit unions.
• Define reputational risk as potential for negative publicity to decrease confidence, trigger litigation, reduce revenues, or cause other adverse impacts to an institution.
• Require federal banking agencies to report on implementation of the bill's reputational risk prohibition.

Official summary

Financial Integrity and Regulation Management Act or the FIRM Act This bill prohibits the consideration of reputational risk by federal banking agencies when regulating, examining, or supervising a depository institution or credit union. The bill defines reputational risk as the potential for negative publicity or public attention to decrease confidence in the institution, lead to litigation, reduce revenues, or result in other adverse impacts to the institution. Agencies must report on the implementation of this bill.

Latest action

Jun 20, 2025: Placed on the Union Calendar, Calendar No. 131.

Committee: House Financial Services