Failed Bank Executives Clawback Act

This bill would change the Federal Deposit Insurance Act so that when a bank with more than $10 billion in assets fails, is resolved, or is placed under the Federal Deposit Insurance Corporation (FDIC) as receiver, the FDIC must take back all or part of the pay received in the prior 3 years by certain people tied to the bank. Those people include directors, officers, controlling stockholders, and others who caused more than a minimal financial loss or a significant harm to the bank. Pay that can be taken back includes salary, bonuses, performance-based pay, stock-based pay, and profits from buying or selling securities. Money recovered would go into the Deposit Insurance Fund. The bill also changes a Dodd-Frank Act provision to cover financial companies for which the FDIC is appointed receiver, regardless of how it was appointed.

Full text and official record on Congress.gov

Sponsors

• Elizabeth Warren Democrat sponsor
• 13 cosponsors