II 

118TH CONGRESS 

1ST SESSION S. 825 

To provide limitations of special assessments on community banks, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 15, 2023 

Mr. HAWLEY (for himself and Mr. BRAUN) introduced the following bill; which 

was read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

A BILL 

To provide limitations of special assessments on community 

banks, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Protecting Consumers 

5 from Bailouts Act’’. 

6 SEC. 2. LIMITATION ON SPECIAL ASSESSMENTS ON COM7 MUNITY BANKS. 

8 (a) IN GENERAL.—The Federal Deposit Insurance 

9 Corporation may not impose an assessment on any bank 

10 with less than $10,000,000,000 in total assets in imposing 


kjohnson on DSK79L0C42PROD with BILLS
2 

•S 825 IS

1 a special assessment under section 13(c)(4)(G)(ii) of the 

2 Federal Deposit Insurance Act (12 U.S.C. 

3 1823(c)(4)(G)(ii)). 

4 (b) PROHIBITION ON INCREASE OF FEES TO CUS5 TOMERS.— 

6 (1) IN GENERAL.—No institution required to 

7 pay a special assessment under section 

8 13(c)(4)(G)(ii) of the Federal Deposit Insurance Act 

9 (12 U.S.C. 1823(c)(4)(G)(ii)) in connection with the 

10 resolution of Silicon Valley Bank and Signature 

11 Bank in March 2023 by the Department of the 

12 Treasury shall increase any fees or charges to cus13 tomers of the institution in an attempt to offset the 

14 costs of the special assessment. 

15 (2) CIVIL PENALTY.—A violation of paragraph 

16 (1) shall constitute a failure to pay an assessment 

17 under section 18(h) of the Federal Deposit Insur18 ance Act (12 U.S.C. 1828(h)). 

19 SEC. 3. FDIC BONUS CLAWBACK AUTHORITY. 

20 Section 23(c)(4)(G) of the Federal Deposit Insurance 

21 Act (12 U.S.C. 1823(c)(4)(G)) is amended by adding at 

22 the end the following: 

23 ‘‘(vi) INCENTIVE-BASED COMPENSA24 TION CLAW BACK.— 


kjohnson on DSK79L0C42PROD with BILLS
3 

•S 825 IS

1 ‘‘(I) DEFINITION.—In this 

2 clause: 

3 ‘‘(aa) INCENTIVE-BASED

4 COMPENSATION.—The term ‘in5 centive-based compensation’ in6 cludes any compensation that is 

7 granted, earned, or vested based 

8 wholly or in part upon the attain9 ment of any financial reporting 

10 measure or other performance 

11 metric. 

12 ‘‘(bb) OFFICER.—The term 

13 ‘officer’ has the meaning given 

14 the term in section 240.16a–1 of 

15 title 17, Code of Federal Regula16 tions. 

17 ‘‘(II) CLAWBACK.— 

18 ‘‘(aa) IN GENERAL.—If the 

19 Corporation takes other action or 

20 provides assistance under this 

21 subparagraph, the Corporation 

22 shall have authority to seek reim23 bursement to the Deposit Insur24 ance Fund any amount of incen25 tive-based compensation paid to 


kjohnson on DSK79L0C42PROD with BILLS
4 

•S 825 IS

1 an officer of an insured deposi2 tory institution for which the 

3 Corporation is appointed receiver 

4 during the 1-year period ending 

5 on the date on which such ap6 pointment is made. 

7 ‘‘(bb) CIVIL PENALTY.—Any 

8 officer who fails to reimburse the 

9 Deposit Insurance Fund under 

10 item (aa) shall be liable to the 

11 United States for a civil penalty 

12 equal to 3 times the amount of 

13 the incentive-based compensation 

14 received by the officer.’’. 

Æ 


kjohnson on DSK79L0C42PROD with BILLS