119-s-4050119th CongressWALLET

Failed Bank Executives Clawback Act

Sponsored By: Senator Warren, Elizabeth [D-MA]

Introduced

Summary

A federal clawback system to recover pay from executives of failed banks. The bill would let the Federal Deposit Insurance Corporation and other federal regulators reclaim broad categories of compensation from covered parties tied to insured depository institutions with more than $10 billion in assets when the institution becomes insolvent, enters resolution, or the FDIC is appointed receiver.

Show full summary
  • Executives and insiders: Directors, officers, controlling stockholders and others found primarily responsible could face clawbacks of salary, bonuses, equity awards, time- or service-based awards, awards tied to performance metrics, and profits realized from securities. The clawback scope covers pay received in the prior 3 years and applies to institutions with more than $10 billion in assets.
  • Deposit Insurance Fund: Any amounts recovered must be deposited into the Deposit Insurance Fund to help cover losses tied to the failed institution.
  • Regulatory reach: The bill would also clarify that the FDIC's orderly liquidation authority applies regardless of how the FDIC is appointed receiver and explicitly authorizes the FDIC to pursue these compensation recoveries.

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Bill Overview

Analyzed Economic Effects

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

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.

Sponsors & CoSponsors

Sponsor

Warren, Elizabeth [D-MA]

MA • D

Cosponsors

  • Sen. Hawley, Josh [R-MO]

    MO • R

    Sponsored 3/11/2026

  • Sen. Cortez Masto, Catherine [D-NV]

    NV • D

    Sponsored 3/11/2026

  • Sen. Britt, Katie Boyd [R-AL]

    AL • R

    Sponsored 3/11/2026

  • Sen. Gallego, Ruben [D-AZ]

    AZ • D

    Sponsored 3/11/2026

  • Sen. Cramer, Kevin [R-ND]

    ND • R

    Sponsored 3/11/2026

  • Sen. Warner, Mark R. [D-VA]

    VA • D

    Sponsored 3/11/2026

  • Sen. Van Hollen, Chris [D-MD]

    MD • D

    Sponsored 3/11/2026

  • Sen. Smith, Tina [D-MN]

    MN • D

    Sponsored 3/11/2026

  • Sen. Warnock, Raphael G. [D-GA]

    GA • D

    Sponsored 3/11/2026

  • Sen. Fetterman, John [D-PA]

    PA • D

    Sponsored 3/11/2026

  • Sen. Kim, Andy [D-NJ]

    NJ • D

    Sponsored 3/11/2026

  • Sen. Blunt Rochester, Lisa [D-DE]

    DE • D

    Sponsored 3/11/2026

  • Sen. Alsobrooks, Angela D. [D-MD]

    MD • D

    Sponsored 3/11/2026

Roll Call Votes

No roll call votes available for this bill.

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