WASHINGTON – Today, Rep. Lisa McClain (R-Mich.) joined Rep. Andy Barr (R-Ky.) in introducing the Financial Integrity and Regulation Management (FIRM) Act to stop discriminatory debanking practices and ensure fair access to the American financial system.
The legislation comes in response to regulators pressuring financial institutions to terminate accounts based on customers’ political beliefs, lawful business activities, or ideological affiliations.
“Debanking is a dangerous trend that erodes trust in our financial system. Banks should never be weaponized, silencing lawful speech, or discriminating against Americans for their beliefs,” McClain said. “I appreciate Rep. Barr for leading this effort to hold financial institutions accountable. They cannot deny service without a legitimate, legal reason.”
“For too long, unelected regulators have used the vague and subjective concept of reputational risk to push political ideology under the guise of bank supervision,” Barr said. “The FIRM Act restores neutrality and integrity to our financial regulatory system and protects the right of all Americans to access banking services without fear of unlawful discrimination.”
The FIRM Act would:
- Eliminate all references to reputational risk as a measure to determine the safety and soundness of regulated depository institutions.
- Eliminate the Federal banking agencies’ ability to promulgate new rules or guidance that use reputational risk to supervise or regulate depository institutions.
- Require the Federal banking agencies to report to Congress on their elimination of reputational risk as a component of the supervision of depository institutions.
