Iowa Attorney General Brenna Bird has joined a multi-state letter urging federal banking regulators to eliminate the use of “reputation risk” in supervisory programs, arguing it can be misused to pressure banks to drop lawful customers based on politics or public opinion. The letter, sent to the Federal Deposit Insurance Corp. (FDIC) and the Office of the Comptroller of the Currency (OCC), claims that the subjective concept of reputation risk has been applied inconsistently and has been used to justify debanking clients, such as religious organizations, political groups, and lawful industries like firearms manufacturers. Bird says, “No one should lose their ability to do business with a bank because of their politics. I’m joining this coalition to ensure that banks govern their clients based on fiscal soundness and safety issues, not partisan issues.” Iowa joined the West Virginia-led effort along with attorneys general from more than 20 other states, including Alabama, Florida, Georgia, Indiana, Missouri, Ohio, Texas, and Wyoming. Read their letter below.
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