Senate Democrats Urge FDIC, OCC to Withdraw Reputation Risk Proposal

Democratic lawmakers, led by Senator Elizabeth Warren (D-MA), wrote to the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) to withdraw a recent proposal that would eliminate ‘reputation risk’ from their oversight frameworks. Senate Democrats posit that the proposal would “curb bank supervisors’ ability to initiate enforcement actions against banks who are engaging in risky activity”. While the FDIC and OCC are not likely to withdraw the rule, the letter underlines continued focus on systemic risk and financial stability ahead of the midterm election season.

Read More