S. 875 · Where this bill is now
In committee
Introduced in the Senate, Mar 6, 2025
What this bill does
In plain words · AI-written from the official summaryLimits what federal banking regulators can consider
The bill prevents federal banking agencies from taking reputational risk into account when they regulate, examine, or oversee banks and credit unions. Reputational risk means the danger that negative publicity could harm an institution's reputation, lead to lawsuits, or hurt its business. Agencies would have to report back on how they're following this new rule.
How it affects you
If you have accounts at a bank or credit union, this could affect how closely regulators watch over these institutions. The banking agencies would focus on different safety concerns but couldn't base decisions on worries about an institution's public reputation or image.
Read the official summary (Introduced in Senate, Mar 6, 2025)
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.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 875
A BILL
FIRM Act
Sponsor: Sen. Tim Scott (R-SC) · Introduced Mar 6, 2025 · Finance and Financial Sector · 2 versions of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Mar 18, 2025: “Placed on Senate Legislative Calendar under General Orders. Calendar No. 32.”