The Failed Bank Executives Clawback Act would give the Federal Deposit Insurance Corporation (FDIC) and federal banking regulators the power to reclaim compensation paid to executives and other key figures at failed banks. Specifically, when a bank with assets over $10 billion fails, becomes insolvent, or enters receivership, the FDIC would be required to claw back compensation received by executives, directors, and controlling shareholders during the three years before the failure—including salary, bonuses, stock awards, and profits from stock sales—if those individuals caused significant financial losses to the institution. The bill applies to senior executives and board members of large banks, as well as major shareholders and partners found primarily responsible for the bank's failure. Any clawed-back compensation would be deposited back into the federal Deposit Insurance Fund, helping cover losses to insured depositors. The bill was introduced in March 2026 with bipartisan support but has not passed into law.
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