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119-hr-6705119th CongressWALLET

Stopping Bonuses for Unsafe and Unsound Banking Act

Sponsored By: Representative Pettersen, Brittany [D-CO-7]

Introduced

Summary

Would bar discretionary bonus payments to senior executives at very large banks when regulators issue a 'Matter Requiring Immediate Attention'. The bill focuses pay consequences on banks with serious supervisory problems and links bonuses to completing remediation steps.

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  • Senior executives: Discretionary bonuses would be paused while a supervisory 'Matter Requiring Immediate Attention' remains unresolved, with an allowance for bonuses during the period to submit a remediation plan and while an accepted remediation plan is being implemented.
  • Large banks: The rule covers bank holding companies, their bank subsidiaries, and standalone banks with more than $50 billion in consolidated assets.
  • Regulators and process: The proposal uses existing supervisory notices and remediation-plan timelines defined under the Federal Deposit Insurance Act to trigger and manage the bonus restriction.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Freeze on bonuses at big banks

This bill would apply to banks and bank holding companies with more than $50 billion in assets. If an agency issues a "matter requiring immediate attention" notice, the bill would bar discretionary bonuses to senior executives. The ban would last until the agency is satisfied the matter is fixed. It would not apply from the notice date until the deadline to submit a remediation plan. If the agency accepts a remediation plan by the deadline, bonuses could continue during the plan's implementation period.

Sponsors & CoSponsors

Sponsor

Pettersen, Brittany [D-CO-7]

CO • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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