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Bank Executive Accountability: Clawbacks and Penalties for Bank Failures

This bill aims to increase accountability for bank executives whose negligence leads to financial losses in failed banks. It allows for the recovery of executive compensation and imposes new financial penalties. This is intended to protect taxpayer money and strengthen confidence in the banking system.
Key points
Banks can reclaim compensation (including bonuses and severance) from executives whose negligence caused financial loss to a failed bank, up to 2 years back. No time limit applies in cases of fraud.
Financial authorities can ban executives who contributed to a bank's failure from participating in any financial institution's affairs.
New financial penalties are introduced for executives who negligently or knowingly caused losses in failed banks, with daily fines up to $25,000 or higher for intentional misconduct.
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Expired
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Additional Information
Print number: 118_HR_4208
Sponsor: Rep. Waters, Maxine [D-CA-43]
Process start date: 2023-06-20
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Failed Bank Executives Accountability and Consequences Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_4208.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-06-20.

What are the main provisions?

Key points include:

  • Banks can reclaim compensation (including bonuses and severance) from executives whose negligence caused financial loss to a failed bank, up to 2 years back. No time limit applies in cases of fraud.
  • Financial authorities can ban executives who contributed to a bank's failure from participating in any financial institution's affairs.
  • New financial penalties are introduced for executives who negligently or knowingly caused losses in failed banks, with daily fines up to $25,000 or higher for intentional misconduct.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Waters, Maxine [D-CA-43].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Financial Services.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Economy Courts and Law