Rep. Waters Introduces Bill to Block Bank Executives From Selling Stock During Financial Trouble
This bill is currently sitting in the House Committee on Financial Services where it was sent in March 2026. No action has been taken on the proposal for four months. The House committee must review the bill before it can move forward, but it is not showing any signs of progress.
This bill is led by a prominent Democrat but lacks the broad bipartisan support usually needed to pass major banking regulations through a divided Congress.
This bill’s path across every version that has carried it.
Reintroduced
Reintroduced from H.R. 4209 (118th), which died when its Congress ended.
H.R. 4209 (118th) →Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
This bill does not directly target small business owners, but it could indirectly affect banking stability by incentivizing better risk management at the largest banks. Healthier banks are more likely to maintain lending to small businesses during times of financial stress, though the connection is indirect.
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.
Ranking Member Maxine Waters reintroduced the Incentivizing Safe and Sound Banking Act (H.R. 7887), which would authorize regulators to restrict executive stock sales when banks receive adverse supervisory assessments or fail to remediate significant regulatory deficiencies.
Ranking Member Maxine Waters has pushed for increased oversight of the largest banks, including measures to restrict executive stock sales, as a counter-proposal to a Republican-led deregulatory package that recently passed the House Financial Services Committee.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Incentivizing Safe and Sound Banking Act
Analysis generated by AI. Always verify with official sources.