# 119-hr-7886: Failed Bank Executives Accountability and Consequences Act

119-hr-7886, Failed Bank Executives Accountability and Consequences Act, is a 119th Congress bill sponsored by Rep. Waters, Maxine [D-CA-43] (D-CA); status introduced; PRIA reads it as touching household money (as of 2026-09-21).

- Canonical: https://policyrisk.com/legislation/119-hr-7886
- As of: 2026-09-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-7886
- Congress: 119
- Title: Failed Bank Executives Accountability and Consequences Act
- Status: introduced
- Introduced: 2026-03-09
- Sponsor: Rep. Waters, Maxine [D-CA-43] (D-CA)
- Cosponsors: 0
- Policy area: Finance and Financial Sector
- Touches household money: yes
- Last recorded action: 2026-09-21

## Summary

**Recoup pay and bar negligent bank executives.** This bill would give regulators new authority to recover compensation, fine, suspend, or ban executives and directors whose negligence caused losses at failed banks. - Executives and directors would face clawbacks of compensation paid during the two-year period before a conservatorship or receivership. The definition of recoverable pay covers salary, bonuses, incentives, severance, deferred pay, benefits, and profits from stock sales, and there is no time limit for recovery in cases of fraud. - Regulators would gain new removal and prohibition powers and could impose civil penalties. Negligent conduct can trigger fines up to $25,000 per day and larger penalties apply for knowing or reckless conduct. - Enforcement would apply beyond insured banks. The FDIC could recover similar compensation from executives of covered financial companies under Dodd-Frank, and the Federal Reserve, OCC, FDIC, NCUA, SEC, and FHFA would be directed to finalize Section 956 rules with robust clawback requirements.

## Provisions PRIA read

- Regulators keep enforcement powers: benefit, medium. If enacted, the bill would say it does not limit regulators' or law enforcement agencies' existing powers to hold bank executives and board members accountable. Existing civil and criminal enforcement tools would remain available. This protection would take effect upon enactment.
- Fines and clawbacks for bank executives: cost, high. If enacted, the bill would let regulators fine and take back pay from bank executives who helped cause a bank to fail. Negligent conduct could draw civil fines of up to $25,000 per day. Knowing or reckless conduct could trigger higher per-day fines under existing maximums. The FDIC would also be ab…
- Ban on failed-bank insiders running banks: cost, medium. If enacted, a federal banking agency would be able to bar a person who negligently caused financial loss to a failed bank from participating in the affairs of any insured depository institution. The agency must make the negligence finding before serving written notice of the intended prohibition. T…

## Related bills

- 119-hr-6644: 21st Century ROAD to Housing Act
- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-6771: Housing Crisis Response Act of 2025
- 119-hr-7977: Energy Bills Relief Act
- 119-hres-1299: Providing for the concurrence by the House in the Senate amendment to H.R. 6644, with amendment.
- 119-hr-7481: Department of Homeland Security Appropriations Act, 2026

## Sources
- [119-hr-7886 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/7886)

## Related
- [119-hr-6644: 21st Century ROAD to Housing Act](https://policyrisk.com/legislation/119-hr-6644)
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-6771: Housing Crisis Response Act of 2025](https://policyrisk.com/legislation/119-hr-6771)
- [119-hr-7977: Energy Bills Relief Act](https://policyrisk.com/legislation/119-hr-7977)
- [119-hres-1299: Providing for the concurrence by the House in the Senate amendment to H.R. 6644…](https://policyrisk.com/legislation/119-hres-1299)
- [119-hr-7481: Department of Homeland Security Appropriations Act, 2026](https://policyrisk.com/legislation/119-hr-7481)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-7886 (as of 2026-09-21).