Waukesha Times

Wisconsin State Representative Scott Fitzgerald has introduced the Halting Uncertain Methods and Practices in Supervision (HUMPS) Act, aimed at increasing transparency in the federal bank examination process. The legislation seeks to revise the CAMELS rating system, which evaluates banks on Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity to market risk.

"The HUMPS Act brings much-needed transparency and accountability to the bank rating process," said U.S. Rep. Scott Fitzgerald (R-Wi).

According to a press release, the bill directs the Federal Financial Institutions Examination Council (FFIEC) to establish clear and objective standards for each category and update how final ratings are calculated. The legislation specifically targets the "Management" component of the CAMELS system, which critics argue relies too heavily on subjective judgment. The bill proposes replacing this with measurable internal governance and risk controls to reduce regulatory uncertainty.

Concerns have been raised that vague standards allow regulators to downgrade institutions based on unclear criteria, potentially affecting decisions like deposit insurance rates or bank mergers. Supporters of the bill include the American Bankers Association, Bank Policy Institute, and Wisconsin Bankers Association.

"The CAMELS rating system has a real impact on how banks operate—but right now, it gives regulators too much room to apply double standards," said Fitzgerald. "This bill ensures that supervisory ratings are based on transparent, quantifiable metrics, not political bias or personal opinion. It’s a necessary step to prevent debanking by removing subjectivity from banking oversight."

Fitzgerald represents Wisconsin’s Fifth Congressional District in the U.S. House of Representatives. He previously served in the Wisconsin State Senate from 1995 to 2021 in roles such as Majority Leader and Minority Leader. He graduated from Hustisford High School and earned a Bachelor of Science degree from the University of Wisconsin-Oshkosh. Fitzgerald also served in the U.S. Army Reserve for 27 years before retiring as a Lieutenant Colonel.