Fed proposes rule codifying elimination of reputation risk

On February 23, the Fed announced that it has issued an NPRM and requested public comment on a proposal to codify the removal of “reputation risk” from its supervisory programs. The proposed rule would also expressly prohibit examiners from encouraging or compelling Fed‑supervised banking organizations to deny or condition financial products or services based on constitutionally protected beliefs or conduct or lawful — but politically disfavored — business activities perceived to present... By: Orrick, Herrington & Sutcliffe LLP