Protecting Consumers from Bank Bailout Costs: Fee Limits and Executive Clawbacks.
This law aims to shield bank customers from bearing the costs of resolving large bank failures. It prohibits large banks that pay special insurance assessments from increasing customer fees to offset these costs. Furthermore, small community banks are exempt from these assessments, and the FDIC gains authority to reclaim large performance bonuses from executives of failed institutions.
Key points
Small banks (under $10 billion in assets) are exempt from paying special assessments used to cover the costs of large bank failures.
Large banks paying the assessment are forbidden from raising customer fees or charges to pass on the resolution costs to consumers.
The FDIC gains power to claw back incentive-based compensation paid to officers of failed banks during the year preceding the failure.
Expired
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