H.R. 7887

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7887 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7887

To prohibit stock sales by senior bank executives in certain 
circumstances.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

March 9, 2026

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

_______________________________________________________________________

A BILL

To prohibit stock sales by senior bank executives in certain 
circumstances.

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 ``Incentivizing Safe and Sound Banking 
Act''.

SEC. 2. STOCK SALE PROHIBITION.

(a) Authority To Prohibit Stock Sales Relating to Cease and Desist 
Orders.--Section 8(b) of the Federal Deposit Insurance Act (12 U.S.C. 
1818(b)) is amended by inserting at the end the following:
``(11) Stock sale prohibition.--The authority to issue an 
order under this subsection or subsection (c) includes the 
authority to prohibit the sale of securities of the insured 
depository institution and any affiliate of such insured 
depository institution received and owned by any current or 
former officer or director of the insured depository 
institution or any institution-affiliated party that received 
such securities as a form of compensation.''.
(b) Automatic Prohibition.--Section 8 of the Federal Deposit 
Insurance Act (12 U.S.C. 1818) is amended by adding at the end the 
following:
``(x) Automatic Prohibition of Stock Sale.--
``(1) In general.--If a covered banking institution has a 
composite or component rating of 3, 4, or 5 under the Uniform 
Financial Institutions Rating System (or an equivalent rating 
under a comparable rating system), or the appropriate Federal 
banking agency issues a `matter requiring immediate attention' 
(or similar supervisory notice, as determined by the 
appropriate Federal banking agency) to a covered banking 
institution, and the institution does not remediate the issue 
by the deadline established by the appropriate Federal banking 
agency, any senior executive officer may not sell securities of 
the covered banking institution or any affiliate of the covered 
banking institution that the individual received as a form of 
compensation, until the matter is resolved to the satisfaction 
of the appropriate Federal banking agency.
``(2) Covered banking institution.--In this subsection, 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); or
``(C) a bank or savings association with more than 
$50,000,000,000 in consolidated assets.''.
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