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Restricting stock sales by executives of large banks facing financial issues

This bill prevents senior executives at large banks from selling their company stock if the bank is in financial trouble or fails to fix regulatory issues. It aims to ensure bank leaders are held accountable for the stability of their institutions and the safety of deposits.
Key points
Bans stock sales for executives at banks with over $50 billion in assets during periods of financial instability.
Applies automatically when a bank receives poor safety ratings or fails to address urgent regulatory warnings by a deadline.
Prevents executives from profiting from their compensation-based stocks while their bank's health is declining.
The restriction remains in place until the bank's issues are resolved to the satisfaction of federal regulators.
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Status:
Introduced
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Additional Information
Incentivizing Safe and Sound Banking Act
Print number: HR 7887
Sponsor: Rep. Waters, Maxine [D-CA-43]
Process start date: 2026-03-09
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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Summary & Status

Key Questions about Restricting stock sales by executives of large banks facing financial issues

A structured overview of the legislative process, official sources, status and civic context.

What is the official ID of this bill?

The official print number for this legislation is HR 7887.

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 2026-03-09.

What are the main provisions?

Key points include:

  • Bans stock sales for executives at banks with over $50 billion in assets during periods of financial instability.
  • Applies automatically when a bank receives poor safety ratings or fails to address urgent regulatory warnings by a deadline.
  • Prevents executives from profiting from their compensation-based stocks while their bank's health is declining.
  • The restriction remains in place until the bank's issues are resolved to the satisfaction of federal regulators.

What is the specific legal status?

The current status is Introduced.

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 2026-04-02.

Analysis and Potential Impact of HR 7887

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge. Review our public AI processing logs for full transparency, and use Lustra to track active legislation for instant status push notifications.

CATEGORIES

Economy