The Federal Reserve proposes ending the use of reputation risk in bank supervisory decisions, aiming to focus on threats to stability. Other US regulators have taken similar steps. Public feedback on the proposal will be considered before finalizing any rule. This comes amid JPMorgan Chase’s disclosure of closing Trump-linked accounts after the Capitol events.

Fed Vice Chair states discrimination has no place in supervision, amidst reports of debanking for political or religious reasons. Trump files a $5bn lawsuit against JPMorgan, alleging political motives behind account closures. The move aims to streamline oversight and provide clearer standards for banks under Fed supervision.

Read more at Yahoo Finance: US Fed moves to drop reputation risk in bank reviews