II 

118TH CONGRESS 

1ST SESSION S. 1045 

To amend 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. 

IN THE SENATE OF THE UNITED STATES 

MARCH 29, 2023 

Ms. WARREN (for herself, Mr. HAWLEY, Ms. CORTEZ MASTO, 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 amend 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. 

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 ‘‘Failed Bank Execu5 tives Clawback Act’’. 


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•S 1045 IS

1 SEC. 2. CLAWBACK. 

2 Section 8(b) of the Federal Deposit Insurance Act 

3 (12 U.S.C. 1818(b)) is amended by inserting after para4 graph (8) the following: 

5 ‘‘(9) CLAWBACK.— 

6 ‘‘(A) DEFINITION.—In this paragraph, the 

7 term ‘covered compensation’ means— 

8 ‘‘(i) salary; 

9 ‘‘(ii) bonuses; 

10 ‘‘(iii) any compensation that is grant11 ed, earned, or vested based wholly or in 

12 part upon the attainment of any financial 

13 reporting measure or other performance 

14 metric; 

15 ‘‘(iv) equity-based compensation; 

16 ‘‘(v) time- or service-based awards; 

17 ‘‘(vi) awards based on nonfinancial 

18 metrics; and 

19 ‘‘(vii) any profits realized from the 

20 buying or selling of securities. 

21 ‘‘(B) CLAWBACK.— 

22 ‘‘(i) LIABILITY OF INSTITUTION-AF23 FILIATED PARTY.—An institution-affiliated 

24 party that is responsible for the condition 

25 of the insured depository institution is lia26 ble to the Corporation for any covered 


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•S 1045 IS

1 compensation clawed back under clause 

2 (ii). 

3 ‘‘(ii) REQUIRED CLAWBACKS.—In the 

4 case of insolvency or resolution of any in5 sured depository institution, the Corpora6 tion shall claw back all or part of the cov7 ered compensation received by an institu8 tion-affiliated party during the preceding 5 

9 years as is necessary to prevent unjust en10 richment and assure that the party bears 

11 losses consistent with the responsibility of 

12 the party. 

13 ‘‘(iii) DEPOSIT.—Any covered com14 pensation clawed back under this subpara15 graph shall be deposited into the Deposit 

16 Insurance Fund or into the general fund of 

17 the Treasury.’’. 

18 SEC. 3. ORDERLY LIQUIDATION OF COVERED FINANCIAL 

19 COMPANIES. 

20 Section 204(a)(3) of the Dodd-Frank Wall Street Re21 form and Consumer Protection Act (12 U.S.C. 

22 5384(a)(3)) is amended by striking ‘‘the financial com23 pany’’ and inserting ‘‘of a financial company for which the 

24 Corporation is appointed receiver, regardless of the proc25 ess by which the Corporation is appointed,’’. 


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•S 1045 IS

1 SEC. 4. RESOLVED INSURED DEPOSITORY INSTITUTIONS. 

2 If an insured depository institution is resolved by the 

3 Federal Deposit Insurance Corporation, the creditors and 

4 shareholders of any corresponding depository institution 

5 holding company shall bear the losses of the insured de6 pository institution. 

Æ 


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