What does Preamble of Incentivizing Safe and Sound Banking Act do?

This bill aims to prohibit stock sales by senior bank executives in certain circumstances.

What does SHORT TITLE. of Incentivizing Safe and Sound Banking Act do?

This bill is formally titled the Incentivizing Safe and Sound Banking Act.

What does STOCK SALE PROHIBITION. of Incentivizing Safe and Sound Banking Act do?

This section amends the Federal Deposit Insurance Act to prohibit stock sales under certain circumstances. The amendment to Section 8(b) grants authority to issue orders prohibiting the sale of securities of an insured depository institution and its affiliates received by officers, directors, or those compensated with such securities. A new provision in Section 8 establishes an automatic prohibition on stock sales by senior executive officers of covered banking institutions. This automatic prohibition applies if a covered banking institution receives a low rating under the Uniform Financial Institutions Rating System or a supervisory notice and fails to remediate the issue. Covered banking institutions are defined as bank holding companies with over $50 billion in assets, bank subsidiaries of such companies, or banks/savings associations with over $50 billion in assets.

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Incentivizing Safe and Sound Banking Act

Last updated: 3/9/2026 · Introduced: 3/9/2026

Author: Maxine Waters (D-CA)

TL;DR (AI)

The bill prohibits senior executives at banking institutions with over $50 billion in assets from selling stock if the institution receives a low financial rating or a supervisory notice and fails to correct the issue.
It grants regulators the authority to issue orders preventing stock sales by bank officers, directors, or those compensated with securities.
The bill amends the Federal Deposit Insurance Act to establish these new restrictions on stock sales by senior bank executives.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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