Failed Bank Executives Accountability and Consequences Act
- Last Action
- 6/20/2023
Actions
- 2023-06-20Referred to the House Committee on Financial Services.
- 2023-06-20Introduced in House
- 2023-06-20Introduced in House
CRS Summary
As of 2023-06-20 (00)
Failed Bank Executives Accountability and Consequences Act
This bill allows the Federal Deposit Insurance Corporation (FDIC) to recover compensation from an executive officer or director of a failed financial company that is in receivership. Specifically, any current or former executive officer whose negligence caused financial loss to the company may have their compensation for the preceding two years clawed back by the FDIC. No time limit applies if the financial loss involves fraud.
In addition, federal banking agencies are allowed to prohibit a party from participation in the affairs of any bank if that party negligently caused financial loss to a failed bank.
The bill also establishes civil penalties for executive officers or directors who caused financial loss to a failed bank.
Cosponsors (10)
- NYDIA VELAZQUEZ (D-NY)
- BRAD SHERMAN (D-CA)
- David Scott (D-GA)
- Emanuel Cleaver (D-MO)
- Joyce Beatty (D-OH)
- Juan Vargas (D-CA)
- Steven Horsford (D-NV)
- Rashida Tlaib (D-MI)
- Sylvia Garcia (D-TX)
- Al Green (D-TX)
Sourced from Congress.gov (public domain).
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.