On April 7, the OCC and the FDIC announced they had jointly issued a final rule codifying the elimination of reputation risk from their supervisory programs. As previously covered by InfoBytes, the rule prohibits the agencies from criticizing or taking adverse action against an institution on the basis of reputation risk and bars them from requiring or encouraging institutions to close accounts or take other actions based on a person or entity’s political, social, cultural, or religious views or beliefs, constitutionally protected speech, or lawful business activities perceived to present reputation risk. The agencies adopted the proposed rule with two modifications: (i) the final rule updated the definition of “reputation risk” to add an express reference to an institution’s “operational condition” alongside its financial condition and (ii) the final rule broadened the prohibition on adverse actions designed to punish or discourage lawful activities from disfavor by a “supervisor” to disfavor by the agency or any of its personnel. The final rule is effective June 9.