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Recovering Pay from Executives of Failed Banks: New Clawback Rules.

This law grants the FDIC clear authority to reclaim salaries, bonuses, and other compensation paid to executives and key personnel of large banks (over $10 billion in assets) up to three years before the institution fails. This measure aims to increase accountability for mismanagement and replenish the fund that protects citizens' deposits. Recovered funds will be deposited directly into the Deposit Insurance Fund.
Key points
Regulators gain explicit power to claw back salaries, bonuses, equity, and profits from securities sales from executives of failed banks that caused significant losses.
The clawback applies to all forms of compensation received within the 3 years preceding the bank's insolvency, provided the bank had over $10 billion in assets.
Recovered funds are deposited into the Deposit Insurance Fund, strengthening the safety net for depositors.
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Additional Information
Print number: 118_S_1790
Sponsor: Sen. Warren, Elizabeth [D-MA]
Process start date: 2023-06-01
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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

Failed Bank Executives Clawback Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_1790.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-06-01.

What are the main provisions?

Key points include:

  • Regulators gain explicit power to claw back salaries, bonuses, equity, and profits from securities sales from executives of failed banks that caused significant losses.
  • The clawback applies to all forms of compensation received within the 3 years preceding the bank's insolvency, provided the bank had over $10 billion in assets.
  • Recovered funds are deposited into the Deposit Insurance Fund, strengthening the safety net for depositors.
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. Warren, Elizabeth [D-MA].

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