H.R. 6705

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6705 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 6705

To prohibit a large banking institution from paying discretionary bonus 
payments when the institution is subject to a Matter Requiring 
Immediate Attention and does not provide the appropriate Federal 
banking agency with a remediation plan to correct the matter, and for 
other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

December 15, 2025

Ms. Pettersen introduced the following bill; which was referred to the 
Committee on Financial Services

_______________________________________________________________________

A BILL

To prohibit a large banking institution from paying discretionary bonus 
payments when the institution is subject to a Matter Requiring 
Immediate Attention and does not provide the appropriate Federal 
banking agency with a remediation plan to correct the matter, and for 
other purposes.

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 ``Stopping Bonuses for Unsafe and 
Unsound Banking Act''.

SEC. 2. FREEZE ON DISCRETIONARY BONUS PAYMENTS BY LARGE BANKING 
INSTITUTIONS IN CERTAIN CIRCUMSTANCES.

(a) In General.--If the appropriate Federal banking agency issues a 
``matter requiring immediate attention'' (or similar supervisory 
notice) to a covered banking institution, the institution may not make 
any discretionary bonus payment to a senior executive officer until the 
matter is resolved to the satisfaction of the appropriate Federal 
banking agency.
(b) Remediation Plan Exception.--Subsection (a) shall not apply to 
a covered banking institution receiving a ``matter requiring immediate 
attention'' (or similar supervisory notice)--
(1) during the period beginning on the date the covered 
banking institution receives the ``matter requiring immediate 
attention'' (or similar supervisory notice) and ending on the 
date of the deadline described under paragraph (2) to submit a 
remediation plan; and
(2) if the covered banking institution provides the 
appropriate Federal banking agency with a remediation plan 
(which shall include an implementation period) to correct the 
matter that is accepted by the appropriate Federal banking 
agency by such deadline as determined by the appropriate 
Federal banking agency, during the period beginning on the date 
the remediation plan is accepted and the end of the 
implementation period.
(c) Definitions.--In this section:
(1) Covered banking institution.--The term ``covered 
banking institution'' means--
(A) a bank holding company with more than 
$50,000,000,000 in consolidated assets;
(B) a bank subsidiary of a bank holding company 
described under subparagraph (A); and
(C) a bank that does not have a bank holding 
company and that has more than $50,000,000,000 in 
consolidated assets.
(2) Other terms.--The terms ``appropriate Federal banking 
agency'', ``bank'', ``bank holding company'', and ``Federal 
banking agency'' have the meanings given those terms, 
respectively, under section 3 of the Federal Deposit Insurance 
Act.
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