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Failed Bank Executives Clawback Act

This law allows federal regulators to take back bonuses and compensation from executives of large banks that fail. It aims to protect public funds and ensure that bank leaders are held financially accountable for the collapse of their institutions.
Key points
Regulators can reclaim salaries, bonuses, and stock profits from the 3 years preceding a bank's failure.
The rules apply to executives and directors of banks with more than $10 billion in assets.
Recovered funds will be deposited into the Deposit Insurance Fund to protect citizens' savings.
Clarifies the legal authority of the FDIC to seize pay from those responsible for a bank's insolvency.
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Status:
Introduced
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Additional Information
Print number: 119_S_4050
Sponsor: Sen. Warren, Elizabeth [D-MA]
Process start date: 2026-03-11
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-flash-latest
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 119_S_4050.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2026-03-11.

What are the main provisions?

Key points include:

  • Regulators can reclaim salaries, bonuses, and stock profits from the 3 years preceding a bank's failure.
  • The rules apply to executives and directors of banks with more than $10 billion in assets.
  • Recovered funds will be deposited into the Deposit Insurance Fund to protect citizens' savings.
  • Clarifies the legal authority of the FDIC to seize pay from those responsible for a bank's insolvency.
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 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 2026-03-21.

What is the impact of this bill?

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.

CATEGORIES

Economy Courts and Law