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118-hr-2972Committee
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Failed Bank Executives Clawback Act

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Summary

Official CRS summary

This bill requires the Federal Deposit Insurance Corporation (FDIC) to claw back compensation paid to certain responsible parties when an insured depository institution or financial company is placed into FDIC receivership. Specifically, all or part of the compensation paid the previous five years to an institution-affiliated party substantially responsible for the condition of the institution must be paid to FDIC to prevent unjust enrichment and to assure that the party bears losses consistent with their responsibility. Compensation includes salary, bonuses, awards, and profits from buying or selling securities. Finally, the bill establishes that an insured depository institution's holding company is liable to the FDIC for payments to insured depositors, the FDIC's receiver costs, and interest when the institution is under FDIC receivership.

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Bill details

Congress
118
Bill type
hr
Introduced
April 27, 2023
Sponsor
Not yet available
Last action
April 27, 2023— Referred to the House Committee on Financial Services.

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