Overview

• The order directs regulators to purge subjective “reputational risk” language from examiner manuals and guidance materials.
• Federal banking agencies and the SBA must complete parallel reviews to identify institutions that implemented politically influenced account closures.
• Violations may trigger enforcement measures such as fines, consent decrees or Justice Department referrals under the Federal Trade Commission Act, the Consumer Financial Protection Act and the Equal Credit Opportunity Act.
• The Small Business Administration is required to notify financial institutions to locate and reinstate clients who were denied services due to unlawful debanking.
• Banks and credit unions should prepare for horizontal supervisory inquiries and retrospective documentation requests on past account closures.