Bank Failure Accountability Act

This bill would require financial institutions with more than $1 billion in assets, and their subsidiaries, to set up a deferment fund holding part of senior employees' pay. Each year, they would hold back at least 50 percent of the amount by which a senior employee's total pay exceeds 7 times the pay of the institution's median employee. If the institution is fined, it would pay the fine from this fund first, and if a bank or credit union fails, the fund would be used to repay depositors before federal deposit insurance funds. Deferred pay would be returned to employees after a set period of 2 to 8 years, depending on the institution's size, if money remains, and otherwise canceled.

Full text and official record on Congress.gov

Sponsors

• Rashida Tlaib Democrat sponsor
• 3 cosponsors