HR 4208 118th Congress House Finance and Financial Sector

Failed Bank Executives Accountability and Consequences Act

Introduced: June 20, 2023 Introduced by: Waters, Maxine Democratic · California See on congress.gov

Everywhere this bill has been 2 steps

Introduced

In committee

Reported out

Passed House

Passed Senate

To President

Became law

Jun 20, 2023

Referred to the House Committee on Financial Services.

Jun 20, 2023

Introduced in House

Plain-English summary Congressional Research Service

Failed Bank Executives Accountability and Consequences Act

This bill allows the Federal Deposit Insurance Corporation (FDIC) to recover compensation from an executive officer or director of a failed financial company that is in receivership. Specifically, any current or former executive officer whose negligence caused financial loss to the company may have their compensation for the preceding two years clawed back by the FDIC. No time limit applies if the financial loss involves fraud.

In addition, federal banking agencies are allowed to prohibit a party from participation in the affairs of any bank if that party negligently caused financial loss to a failed bank.

The bill also establishes civil penalties for executive officers or directors who caused financial loss to a failed bank.

What's happening now June 20, 2023

Referred to the House Committee on Financial Services.

Committees of jurisdiction 1