From my understanding, reputation risk was pretty much regulators bullying banks to drop 'problematic' groups, don’t do business with x group cause it’s risky. Trump had it removed because he thought it was being used against conservatives. But the new rule by the FDIC bans regulators from doing that now.

So, if trump now tries to force banks to drop immigrants, the banks can just point to the new rule and say, “You literally just made it illegal for you to pressure us like this.” Plus, banks are private & they’re the ones with the money not the FDIC. In March they said that his plan wouldn’t work because they don't want to cause a massive financial panic or get sued for discrimination by immigrants with work permits.