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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.
article Official text account_balance Process page
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
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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

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.

CATEGORIES

Economy