Failed Bank Executives Accountability and Consequences Act
Rep. Waters Pushes Bill to Claw Back Bonuses and Ban Executives Following Major Bank Failures
This bill is currently in the early stages of the legislative process after being sent to the House Committee on Financial Services for review. It is considered active, but no further hearings or votes have been scheduled at this time. There is no companion bill listed for this legislation.
Legislative Progress
While there is public anger over bank failures, this bill lacks broad bipartisan support and faces a difficult path through the committee process.
Key Points
Impact Analysis
Personal Impact
Small business owners who keep deposits at banks would benefit from stronger accountability for bank executives. When bank leaders know they could lose their pay and be banned from the industry for negligence, they have more reason to manage risk carefully, which helps protect depositor funds and reduce the chance of sudden bank failures that can freeze business accounts.
“the Corporation may recover, from any current or former executive officer or director of such insured depository institution whose negligence caused financial loss to such insured depository institution, any compensation received during the 2-year period”
Milestones
Referred to the House Committee on Financial Services.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
4 articles
Senate Bill To Take Bonuses Back From Failed Bank Executives Clears First Hurdle
The bill would allow the FDIC to take back compensation received by bank executives during the two years before a collapse and strengthen regulators' ability to ban or remove executives who fail to appropriately oversee their bank. It is a less extreme version of a bill introduced by Sen. Warren.
The rise of America’s anti-corporate populists
Covers the unlikely alliance between Elizabeth Warren and JD Vance on the Failed Bank Executives Clawback Act (FBECA), which was later incorporated into the RECOUP Act. The legislation aims to recover senior executive pay, including bonuses and golden parachutes, to discourage irresponsible risk.
How House Republicans are in the middle of 2024
Reports on the Senate Banking Committee markup of the RECOUP Act and the competing Failed Bank Executives Clawback Act. It highlights the bipartisan interest in giving regulators stronger authority to claw back incentive-based pay and ban executives from the industry after misconduct.
Source Information
Document Type
Congressional Bill
Official Title
Failed Bank Executives Accountability and Consequences Act
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.