Congress·In Committee·S. 4050

Sen. Warren and Sen. Hawley Push Bipartisan Bill to Claw Back Pay from Failed Bank Executives

Failed Bank Executives Clawback Act

10 days ago·View on Congress.gov

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Key Points

This bill gives the FDIC and federal banking regulators clear authority to claw back pay from executives of large failed banks — specifically those with more than $10 billion in total assets.
From policy text
“In the case of insolvency, resolution, or the appointment of the Corporation as receiver of any insured depository institution with total assets more than $10,000,000,000, the Corporation shall claw back all or part of the covered compensation received by any covered party”
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The clawback covers a wide range of pay received in the three years before a bank's failure, including salary, bonuses, stock-based pay, and any profits from buying or selling securities.
From policy text
“the Corporation shall claw back all or part of the covered compensation received by any covered party with respect to the insured depository institution during the preceding 3 years”
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All money recovered from executives would go into the Deposit Insurance Fund, which is the government's pool of money used to protect everyday people's bank deposits when a bank fails.
From policy text
“Any covered compensation clawed back under this subparagraph shall be deposited into the Deposit Insurance Fund.”
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The bill targets directors, officers, controlling stockholders, and anyone found primarily responsible for the bank's failure, holding them personally liable for the compensation they received.
The bill has notable bipartisan support, introduced by Warren (D) and Hawley (R) along with a mix of Democratic and Republican co-sponsors, and has been referred to the Senate Banking Committee.

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Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions

Mar 11, 2026Senate

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Mar 11, 2026

Introduced in Senate

Related News

2 articles

ABA Banking Journal·10 days ago

Senators reintroduce bill to 'claw back' bank executive pay

A bipartisan group of 14 senators has reintroduced the Failed Bank Executives Clawback Act to require the FDIC to recover pay from executives of large failed banks. The bill targets compensation received during a three-year period preceding a bank's failure for institutions with $10B+ in assets.

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Banking and Finance Law Daily·9 days ago

RECEIVERSHIPS—Senators revive bill to claw back executive pay when banks fail

The Failed Bank Executives Clawback Act of 2026 was reintroduced on March 11, 2026. The bill would grant the FDIC authority to claw back salaries, bonuses, and stock profits from executives of large failed institutions for the three-year period preceding insolvency.