Senate Banking Committee Chairman Tim Scott introduced a bill that would stop banking regulators from using reputational risk as a measure of safety and soundness. On Thursday, the South Carolina ...

Senate Banking Committee Chair Tim Scott, R-SC, introduced a bill Thursday meant to eliminate reputational risk as a metric regulators would use to gauge the safety and soundness of banks.

The legislation would also eliminate federal banking agencies' ability to move forward with new rules or guidance using reputational risk to regulate financial institutions, and require those ...