Rep. Tlaib Introduces Bank Failure Accountability Act to Use Executive Pay for Fines
This bill is in the early stages of the legislative process and is sitting with the House Committee on Financial Services. The committee must review the bill before it can move forward, but no action has occurred since June 24, 2026. Most bills do not receive a committee vote, so this proposal is currently stalled.
This bill faces strong opposition from the banking industry and lacks Republican support, making it difficult to pass in a divided Congress.
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
If a large bank or credit union fails, this bill requires deferred executive pay to be used to make depositors whole before government insurance funds are tapped. Many small businesses keep large operating accounts that exceed standard FDIC insurance limits (as seen when Silicon Valley Bank failed in 2023), so this could protect their deposits in future bank collapses.
“the depository institution or credit union shall use amounts in the deferment fund of the depository institution or credit union to ensure depositors do not lose any of their deposits.”
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.
Sponsor introductory remarks on measure. (CR H4251)
Rep. Rashida Tlaib (D-Mich.) introduced legislation to hold bank executives financially accountable for corporate misconduct. The bill requires large banks to defer a portion of executive pay into a fund that would be used to pay for any civil or criminal fines the institution receives.
A new legislative proposal from Rep. Rashida Tlaib targets executive compensation at large banks. The Bank Failure Accountability Act would require firms to defer pay for senior employees, creating a financial buffer for fines. Analysts suggest this could impact major banks like Morgan Stanley.
Amidst a busy legislative calendar, the Bank Failure Accountability Act has emerged as a key progressive priority. The bill, introduced by Rep. Rashida Tlaib, seeks to link executive pay directly to bank stability and legal compliance by deferring compensation to cover future fines.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Bank Failure Accountability Act
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