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Increased Accountability for Bank Executives After Financial Failure.

This law strengthens accountability for bank management following institutional failure. It allows the FDIC to claw back compensation and bonuses from executives and directors substantially responsible for the bank's collapse. The goal is to deter risky behavior and enhance financial stability, indirectly safeguarding citizens' deposits and the broader economy.
Key points
Compensation Clawbacks: The FDIC can recover compensation (including bonuses and stock options) received by responsible executives up to two years before the bank failed.
Industry Ban: Executives found responsible for a bank failure can be prohibited from working in any financial company for a minimum of two years.
Insurance Exclusion: Liability insurance policies for senior executives will not cover financial penalties imposed under this new accountability framework.
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Expired
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Additional Information
Print number: 118_S_1181
Sponsor: Sen. Reed, Jack [D-RI]
Process start date: 2023-04-18
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Bank Management Accountability Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_1181.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-04-18.

What are the main provisions?

Key points include:

  • Compensation Clawbacks: The FDIC can recover compensation (including bonuses and stock options) received by responsible executives up to two years before the bank failed.
  • Industry Ban: Executives found responsible for a bank failure can be prohibited from working in any financial company for a minimum of two years.
  • Insurance Exclusion: Liability insurance policies for senior executives will not cover financial penalties imposed under this new accountability framework.
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 Sen. Reed, Jack [D-RI].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Economy Courts and Law Security