CONGRESS FOR VOTERS

DemocratBill · S. 4050· Senate(119-S-4050)

Failed Bank Executives Clawback Act

Rep. Warren
Age: 77 years
Massachusetts
Introduced
3/11/2026
Last activity
3/11/2026 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sponsored by
Elizabeth Warren
Cosponsors
Democrat - 10Republican - 3
Finance and Financial Sector
  1. Introduced
  2. In Committee

What this bill would do

This bill is known as the Failed Bank Executives Clawback Act. It amends 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. The text defines covered compensation to include items like salary, bonuses, and equity-based compensation. It applies to covered parties associated with an insured depository institution that caused significant financial loss or adverse effects. In cases of insolvency, resolution, or the appointment of the Corporation as a receiver for an institution with more than $10,000,000,000 in total assets, the Corporation must claw back all or part of the covered compensation received during the preceding 3 years. Any compensation clawed back must be deposited into the Deposit Insurance Fund.

Yes· 3 of 7

  • Does this give people more protection from unfair business practices?+6

    Protects consumers and the broader financial system by discouraging risky behavior by large bank executives.

  • Does this make the government pay for what it commits to?+5

    Strengthens the financial safety net by recouping executive compensation during bank failures.

  • Does this give the federal government more power?+4

    Expands regulatory authority for the FDIC and federal regulators to claw back executive pay.

The opposite· 3 of 4

  • Would the very wealthiest people be better off under this?-5

    Directly impacts ultra-high-net-worth bank executives and major shareholders deemed responsible for bank failures.

  • Would billionaires be better off under this?-5

    Subjects ultra-wealthy controlling stockholders and senior executives to mandatory compensation clawbacks.

  • Would people with substantial wealth be better off under this?-4

    Targets wealthy banking executives and directors for compensation clawbacks upon bank insolvency.