Bill > S1045

This bill, the Failed Bank Executives Clawback Act, amends the Federal Deposit Insurance Act to give the Federal Deposit Insurance Corporation (FDIC) and other federal regulators the authority to claw back certain compensation, including salaries, bonuses, and other performance-based pay, from executives of failed banks. The bill requires the FDIC to claw back all or part of the covered compensation received by an "institution-affiliated party" (such as a bank executive) during the preceding 5 years if the bank becomes insolvent or is resolved, in order to prevent unjust enrichment and ensure the party bears losses consistent with their responsibility. The bill also clarifies that the FDIC has the authority to orderly liquidate a financial company for which it is appointed receiver, and that the creditors and shareholders of a corresponding depository institution holding company must bear the losses of the insured depository institution if it is resolved by the FDIC.

Housing and Urban Affairs

https://www.congress.gov/bill/118th-congress/senate-bill/1045/all-info