[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1790 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 1790
To amend the Federal Deposit Insurance Act to clarify that the Federal
Deposit Insurance Corporation and appropriate Federal regulators have
the authority to claw back certain compensation paid to executives, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 1, 2023
Ms. Warren (for herself, Mr. Hawley, Ms. Cortez Masto, Mr. Braun, Mr.
Vance, Mr. Menendez, Mr. Warner, Mr. Van Hollen, Ms. Smith, Mrs. Britt,
Mr. Cramer, Mr. Warnock, and Mr. Fetterman) introduced the following
bill; which was read twice and referred to the Committee on Banking,
Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Federal Deposit Insurance Act to clarify that the Federal
Deposit Insurance Corporation and appropriate Federal regulators have
the authority to claw back certain compensation paid to executives, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Failed Bank Executives Clawback
Act''.
SEC. 2. CLAWBACK.
Section 8(b) of the Federal Deposit Insurance Act (12 U.S.C.
1818(b)) is amended by inserting after paragraph (8) the following:
``(9) Clawback.--
``(A) Definitions.--In this paragraph:
``(i) Covered compensation.--The term
`covered compensation' means--
``(I) salary;
``(II) bonuses;
``(III) any compensation that is
granted, earned, or vested based wholly
or in part upon the attainment of any
financial reporting measure or other
performance metric;
``(IV) equity-based compensation;
``(V) time- or service-based
awards;
``(VI) awards based on nonfinancial
metrics; and
``(VII) any profits realized from
the buying or selling of securities.
``(ii) Covered party.--
``(I) In general.--The term
`covered party' means an entity
described in subclause (II) with
respect to an insured depository
institution that caused more than a
minimal financial loss to, or a
significant adverse effect on, the
insured depository institution.
``(II) Entities described.--An
entity described in this subclause is
any of the following:
``(aa) Any director,
officer, or controlling
stockholder (other than a bank
holding company or savings and
loan holding company) of, or
agent for, an insured
depository institution.
``(bb) Any other person who
has filed or is required to
file a change-in-control notice
with the appropriate Federal
banking agency under section
7(j).
``(cc) Any shareholder
(other than a bank holding
company or savings and loan
holding company), joint venture
partner, and any other person
as determined by the
appropriate Federal banking
agency (by regulation or case-
by-case) who participates in
the conduct of the affairs of
an insured depository
institution.
``(B) Clawback.--
``(i) Liability of covered party.--A
covered party with respect to an insured
depository institution with total assets more
than $10,000,000,000 is liable to the
Corporation for any covered compensation clawed
back under clause (ii).
``(ii) Required clawbacks.--In the case of
insolvency, resolution, or the appointment of
the Corporation as receiver of any insured
depository institution with total assets more
than $10,000,000,000, the Corporation shall
claw back all or part of the covered
compensation received by any covered party with
respect to the insured depository institution
during the preceding 3 years.
``(iii) Deposit.--Any covered compensation
clawed back under this subparagraph shall be
deposited into the Deposit Insurance Fund.''.
SEC. 3. ORDERLY LIQUIDATION OF COVERED FINANCIAL COMPANIES.
Section 204(a)(3) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5384(a)(3)) is amended by striking ``the
financial company'' and inserting ``of a financial company for which
the Corporation is appointed receiver, regardless of the process by
which the Corporation is appointed,''.
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