What does Preamble of Failed Bank Executives Clawback Act do?

This bill proposes to amend the Federal Deposit Insurance Act. The proposed amendment aims to clarify the authority of the Federal Deposit Insurance Corporation and Federal regulators. The clarified authority pertains to the ability to claw back certain compensation paid to executives.

What does SHORT TITLE. of Failed Bank Executives Clawback Act do?

This bill is formally titled the 'Failed Bank Executives Clawback Act'.

What does CLAWBACK. of Failed Bank Executives Clawback Act do?

This section amends the Federal Deposit Insurance Act to establish a 'clawback' provision. The term 'covered compensation' includes salary, bonuses, performance-based compensation, equity-based compensation, time- or service-based awards, awards based on nonfinancial metrics, and profits from securities. A 'covered party' is an entity, such as directors, officers, or controlling stockholders, found to have caused a significant adverse effect on an insured depository institution. The clawback provision applies to insured depository institutions with total assets exceeding $10,000,000,000. In cases of insolvency, resolution, or receivership of such institutions, the Corporation is required to claw back covered compensation received by covered parties within the preceding 3 years. Clawed-back compensation is to be deposited into the Deposit Insurance Fund.

What does ORDERLY LIQUIDATION OF COVERED FINANCIAL COMPANIES. of Failed Bank Executives Clawback Act do?

This section amends Section 204(a)(3) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The amendment modifies language related to the appointment of a receiver for a financial company. The revised language clarifies that the Corporation's role as receiver applies regardless of the process by which it is appointed.

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Failed Bank Executives Clawback Act

Last updated: 3/11/2026 · Introduced: 3/11/2026

Author: Elizabeth Warren (D-MA)

TL;DR (AI)

This bill allows the Federal Deposit Insurance Corporation to recover compensation paid to executives within the three years prior to a bank's insolvency, resolution, or receivership if those executives are found to have significantly harmed the institution.
The clawback provision applies to insured depository institutions with over $10 billion in assets.
This bill clarifies the Federal Deposit Insurance Corporation’s authority as receiver for financial companies, regardless of the appointment process.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

4 sections

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