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Increased Bank Executive Accountability and Clawbacks After Financial Institution Failures.

This law aims to strengthen the financial system by holding senior bank executives personally accountable for institutional failures. It introduces mechanisms allowing regulators or bank boards to recover bonuses and other incentive pay (clawbacks) from executives responsible for a bank's collapse. This measure is designed to deter risky behavior and protect the financial stability that affects all citizens.
Key points
Large banks (over $10 billion in assets) must adopt rules allowing the recovery of executive compensation (bonuses, severance) received during the 24 months before the institution's failure.
Regulators gain expanded authority to remove senior executives and impose significantly higher financial penalties (up to $3 million) for gross negligence or willful misconduct.
Federal agencies must publicly review and report on the causes of large bank failures and the effectiveness of their own supervision, increasing transparency.
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Expired
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Additional Information
Print number: 118_S_2190
Sponsor: Sen. Brown, Sherrod [D-OH]
Process start date: 2023-06-22
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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

RECOUP Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_2190.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-06-22.

What are the main provisions?

Key points include:

  • Large banks (over $10 billion in assets) must adopt rules allowing the recovery of executive compensation (bonuses, severance) received during the 24 months before the institution's failure.
  • Regulators gain expanded authority to remove senior executives and impose significantly higher financial penalties (up to $3 million) for gross negligence or willful misconduct.
  • Federal agencies must publicly review and report on the causes of large bank failures and the effectiveness of their own supervision, increasing transparency.
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. Brown, Sherrod [D-OH].

What is the latest detailed status?

The latest detailed status is: Placed on Senate Legislative Calendar under General Orders. Calendar No. 115.

Is this summary verified?

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

CATEGORIES

Economy