The Federal Reserve has launched a 60-day public comment period for a new proposal that aims to permanently remove “reputational risk” from banking regulatory rules. The new proposal clearly states that examiners should prioritize substantive risks that threaten a bank’s “safety and soundness” and should not penalize or prohibit customers engaged in legitimate activities based on “reputational risk,” including crypto companies.
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The Federal Reserve proposes to permanently eliminate "reputational risk" review
The Federal Reserve has launched a 60-day public comment period for a new proposal that aims to permanently remove “reputational risk” from banking regulatory rules. The new proposal clearly states that examiners should prioritize substantive risks that threaten a bank’s “safety and soundness” and should not penalize or prohibit customers engaged in legitimate activities based on “reputational risk,” including crypto companies.