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Ban on Bank Stock Sales for Executives During Financial Distress

New rules aim to enhance bank safety by restricting senior executives from selling bank stock when the institution faces financial or supervisory issues. This prevents executives from profiting while the bank is in trouble, thereby protecting financial stability and indirectly safeguarding citizens' savings.
Key points
Prohibits bank officers and directors from selling bank securities if the bank receives a cease and desist order.
Automatically bans stock sales for senior executives if the bank has a low financial rating or fails to address supervisory concerns by a deadline.
Applies to large banks and bank holding companies with over $50 billion in assets.
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Status:
Expired
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Additional Information
Print number: 118_HR_4209
Sponsor: Rep. Waters, Maxine [D-CA-43]
Process start date: 2023-06-20
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Incentivizing Safe and Sound Banking Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_4209.

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:

  • Prohibits bank officers and directors from selling bank securities if the bank receives a cease and desist order.
  • Automatically bans stock sales for senior executives if the bank has a low financial rating or fails to address supervisory concerns by a deadline.
  • Applies to large banks and bank holding companies with over $50 billion in assets.
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.

What is the impact of this bill?

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Economy