Failed Bank Executives Clawback Act

Clawbacks for big bank executives

This bill would require the FDIC to recover pay from certain leaders at insured banks with more than $10 billion in assets. The clawback would apply if the bank is insolvent, in resolution, or the FDIC is appointed receiver. The FDIC would be able to recover covered compensation paid in the preceding three years, including salary, bonuses, equity awards, time- or service-based awards, performance-based pay, nonfinancial awards, and profits from buying or selling securities. Covered parties would include directors, officers, some controlling stockholders (excluding bank or savings-and-loan holding companies), persons filing change-in-control notices, shareholders, joint venture partners, and others the regulator finds primarily responsible. Any money recovered would be deposited into the Deposit Insurance Fund.