To provide Federal financial regulators with clawback authority over executive compensation and additional industry prohibition and civil money penalty authority with respect to executives whose negligence caused financial loss to the applicable financial institution, and for other purposes.
Failed Bank Executives Accountability and Consequences Act
This bill allows the Federal Deposit Insurance Corporation (FDIC) to recover compensation from an executive officer or director of a failed financial company that is in receivership. Specifically, any current or former executive officer whose negligence caused financial loss to the company may have their compensation for the preceding two years clawed back by the FDIC. No time limit applies if the financial loss involves fraud.
In addition, federal banking agencies are allowed to prohibit a party from participation in the affairs of any bank if that party negligently caused financial loss to a failed bank.
The bill also establishes civil penalties for executive officers or directors who caused financial loss to a failed bank.
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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