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S 4050·Federal·senate

Failed Bank Executives Clawback Act

In CommitteeFiled Mar 11, 2026
Sponsor: Sen. Warren, Elizabeth [D-MA] (D)
Latest Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Mar 11, 2026

Summary

The Failed Bank Executives Clawback Act amends the Federal Deposit Insurance Act to give the FDIC and other regulators authority to seize certain compensation from bank executives when a large insured bank fails. It targets salaries, bonuses, equity awards and other pay for executives deemed responsible for the failure, and directs the recovered money into the Deposit Insurance Fund. The measure is intended to protect depositors and deter risky behavior by senior bank leaders.

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