US Codex
Bill
Notes

H.R. 2702 — what changed

Financial Integrity and Regulation Management Act

From Introduced in House to Reported in House. 3 sections amended between Introduced in House and Reported in House.

Sec. 2 Findings

added Congress finds that—

(a)
removed Findings— Congress finds that—
(1)
renumbered was (2)(3) the primary objective of financial regulation and supervision by the Federal banking agencies is to promote safety and soundness of depository institutions;
(2)
renumbered was (2)(4) all federally legal businesses and law-abiding citizens regardless of political ideology should have equal opportunity to obtain financial services and should not face unlawful discrimination in obtaining such services;
(3)
renumbered was (2)(5) financial service providers are private entities entitled to provide services to whichever customers they so choose, provided that those decisions do not violate the law;
(4)
renumbered was (2)(6) financial service providers should strive to ensure that all business decisions are based on factors free from unlawful prejudice or political influence;
(5)
renumbered was (2)(7) the use of reputational risk in supervisory frameworks encourages Federal banking agencies to regulate depository institutions based on the subjective view of negative publicity and provides cover for the agencies to implement their own political agenda unrelated to the safety and soundness of a depository institution;
(6)
renumbered was (2)(8) Federal banking agencies have in fact used reputational risk to limit access of federally legal businesses and law-abiding citizens to financial services in 2018 when the Federal Deposit Insurance Corporation acknowledged that the agency used reputational risk reviews to limit access to financial services by certain industries, commonly known as “Operation Choke Point”; and
(7)
renumbered was (2)(9) reputational risk does not appear in any statute and is an unnecessary and improper use of supervisory authority that does not contribute to the safety and soundness of the financial system.

Sec. 3 Definitions

In this Act:

(1)
Depository institution— The term depository institution—
(A)
has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and
(B)
changed includes an insured credit union.union, as such term is defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
(2)
Federal banking agency— The term Federal banking agency—
(A)
has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and
(B)
includes—
(i)
the National Credit Union Administration; and
(ii)
the Bureau of Consumer Financial Protection.
(3)
changed Insured credit union—Foreign terrorist organization— The term insured credit union has the meaning given “foreign terrorist organization” means a foreign organization that is designated by the term Secretary of State in accordance with section 101 219 of the Federal Credit Union Immigration and Nationality Act (12 (8 U.S.C. 1752).1189).
(4)
changed Reputational risk— The term reputational risk means the potential that negative publicity or negative public opinion regarding an a depository institution’s business practices, whether true or not, will cause a decline in confidence in the institution or a decline in the customer base, costly litigation, or revenue reductions or otherwise adversely impact the depository institution.institution. The previous sentence does not apply to negative publicity or negative public opinion regarding an institution’s business practices where such practices involve unlawful transactions in connection with state sponsors of terrorism or foreign terrorist organizations.
(5)
added State sponsors of terrorism— The term “state sponsors of terrorism” means a country, the government of which has been determined by the Secretary of State to have repeatedly provided support for acts of international terrorism, for purposes of—
(A)
added section 1754(c)(1)(A)(i) of the Export Control Reform Act of 2018 (50 U.S.C. 4813(c)(1)(A)(i));
(B)
added section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371);
(C)
added section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)); or
(D)
added any other provision of law.

Sec. 5 Prohibition

changed No Federal banking agency may engage in any activity concerning or related to the regulation, supervision, or examination, examination of the reputational risk, or any term substantially similar, or the management thereof, of a depository institution, including—

(1)
establishing any rule, regulation, requirement, standard, or supervisory expectation concerning or related to the reputational risk, or any term substantially similar, or the management thereof, of a depository institution whether binding or not;
(2)
conducting any examination, assessment, data collection, or other supervisory exercise concerning or related to reputational risk, or any term substantially similar, or the management thereof, of a depository institution;
(3)
issuing any examination finding, supervisory criticism, or other supervisory or examination communication concerning or related to reputational risk, or any term substantially similar, or the management thereof, of a depository institution;
(4)
making any supervisory ratings decision or determination that is based, in whole or in part, on any matter concerning or related to reputational risk, or any term substantially similar, or the management thereof, of a depository institution; and
(5)
taking any formal or informal enforcement action that is based, in whole or in part, on any matter concerning or related to reputational risk, or any term substantially similar, or the management thereof, of a depository institution.