Legal / Reputational Risk

Legal risk arises from the potential that unenforceable contracts, lawsuits, or adverse judgments can disrupt or otherwise negatively affect the operations or condition of a banking organization. Reputational risk is the potential that negative publicity regarding an institution's business practices, whether true or not, will cause a decline in the customer base, costly litigation, or revenue reductions. (SR 95-51)

Policy Letters

Legal / Reputational Risk

Creation of Novel Activities Supervision Program

Engagement in Crypto-Asset-Related Activities by Federal Reserve-Supervised Banking Organizations

Federal Financial Institutions Examination Council Issues Joint Statement on Managing the LIBOR Transition

Consolidated Recovery Planning for Certain Large Domestic Bank Holding Companies

Addendum to the Interagency Policy Statement on Income Tax Allocation in a Holding Company Structure

Heightened Supervisory Expectations for Recovery and Resolution Preparedness for Certain Large Bank Holding Companies - Supplemental Guidance on Consolidated Supervision Framework for Large Financial Institutions (SR letter 12-17/CA letter 12-14)

Managing Foreign Exchange Settlement Risks for Physically Settled Transactions

Risk Transfer Considerations When Assessing Capital Adequacy – Supplemental Guidance on Consolidated Supervision Framework for Large Financial Institutions (SR letter 12-17/CA letter 12-14)

Commodity Futures Trading Commission (CFTC) Swap Clearing Rules

Interagency Counterparty Credit Risk Management Guidance

Guidance on Filing Notices of Proposed Class Action Settlements

Interagency Statement on Sound Practices Concerning Elevated Risk Complex Structured Finance Activities

Guidance Regarding Indemnification Agreements and Payments

Interagency Agreement Relating to the Coordination of Major Criminal, Civil and Administrative Cases

Additional Resources

Manual References

Commercial Bank Examination Manual

  • Section 4070.1, "Litigation and Other Legal Matters, and Examination-Related Subsequent Events"
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Last Update: August 02, 2024