S. 1045

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1045 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
1st Session
S. 1045

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.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

March 29, 2023

Ms. Warren (for herself, Mr. Hawley, Ms. Cortez Masto, and Mr. Braun) 
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.

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) Definition.--In this paragraph, 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.
``(B) Clawback.--
``(i) Liability of institution-affiliated 
party.--An institution-affiliated party that is 
responsible for the condition of the insured 
depository institution is liable to the 
Corporation for any covered compensation clawed 
back under clause (ii).
``(ii) Required clawbacks.--In the case of 
insolvency or resolution of any insured 
depository institution, the Corporation shall 
claw back all or part of the covered 
compensation received by an institution-
affiliated party during the preceding 5 years 
as is necessary to prevent unjust enrichment 
and assure that the party bears losses 
consistent with the responsibility of the 
party.
``(iii) Deposit.--Any covered compensation 
clawed back under this subparagraph shall be 
deposited into the Deposit Insurance Fund or 
into the general fund of the Treasury.''.

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,''.

SEC. 4. RESOLVED INSURED DEPOSITORY INSTITUTIONS.

If an insured depository institution is resolved by the Federal 
Deposit Insurance Corporation, the creditors and shareholders of any 
corresponding depository institution holding company shall bear the 
losses of the insured depository institution.
<all>