Bill · H.R. 7886· House(119-HR-7886)
Failed Bank Executives Accountability and Consequences Act
- Introduced
- 3/9/2026
- Last activity
- 3/9/2026 — Referred to the House Committee on Financial Services.
- Sponsored by
- Maxine Waters
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Failed Bank Executives Accountability and Consequences Act aims to provide federal financial regulators with more ways to hold executives accountable. It grants the Corporation the authority to claw back compensation from executive officers or directors whose negligence caused financial loss to an insured depository institution or a covered financial company. The bill also allows federal banking agencies to prohibit certain individuals from participating in the conduct of affairs of insured depository institutions if they acted negligently. Additionally, it establishes a system of civil money penalties for executives who contribute to institution failure. These tools are intended to target both negligence and fraud.
Yes
Does this make the government pay for what it commits to?+5
The bill increases accountability for financial losses by allowing the recovery of executive compensation and imposing fines.
Does this give people more protection from unfair business practices?+4
The bill strengthens financial oversight by holding executives personally liable for negligence that causes institution failure.
Does this make what the government does easier for the public to see?+3
The bill empowers federal regulators with specific tools to enforce accountability for corporate misconduct.
The opposite
Would high-income households be better off under this?-7
The bill specifically targets the compensation and financial assets of high-earning bank executives through clawbacks and fines.
Would business owners be better off under this?-5
The bill imposes significant financial penalties and industry prohibitions on corporate directors and officers.
Who it would affect, and how
Potential Positive Impacts for People
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Recoupment of Compensation: The Corporation can recover compensation received during a 2-year period from executives or directors whose negligence caused financial loss, and in cases of fraud, there is no time limit for this recovery (Section 3). This includes salary, bonuses, incentives, benefits, severance, deferred compensation, or golden parachute benefits, as well as profits from the sale of securities (Section 3).
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Prohibition from Industry Participation: Federal banking agencies may serve a written notice to prohibit an institution-affiliated party from any further participation in the conduct of the affairs of any insured depository institution if they negligently caused financial loss (Section 4).
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Civil Penalties for Misconduct: Executives who negligently cause financial loss to a failed insured depository institution may be required to pay a civil penalty of up to $25,000 for each day the conduct occurred (Section 5). For those who knowingly or recklessly cause such loss, higher penalties may apply (Section 5).
Potential Negative Impacts for People
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Financial Burdens on Executives: Executive officers and directors may face the loss of their compensation, including salary, bonuses, and benefits, if their negligence is found to have caused financial loss to an institution (Section 3).
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Career Restrictions: Individuals found to have acted negligently may be prohibited from participating in the conduct of the affairs of any insured depository institution (Section 4).
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Daily Fines: Executives may be subject to significant daily fines, with penalties for negligence reaching up to $25,000 per day, and potentially even higher amounts for those acting knowingly or recklessly (Section 5).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For High Income Households-7Good For Business Owners-5
- Economy And Finance
- Improves Fiscal Responsibility+5Improves Consumer Protection+4
- Governance And Ideology
- Improves Government Transparency+3
- 3/9/2026
- Referred to the House Committee on Financial Services.
- Introduced in House