Fed Unveils Plan on Eliminating Reputation Risk in Bank Exam

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000The Fed:The Federal Reserve unveiled a new proposal that further targets how examiners scrutinize banks’ risk after President Donald Trump moved to rein in what he sees as the closing of customer accounts for unfair reasons. The new plan, which is subject to public consultation, would seek to explicitly prohibit examiners from “penalizing or prohibiting” a firm from banking a customer engaged in legal activity. Instead, examinations should prioritize risks that threaten bank safety and soundness.