Protecting Consumers from Bailouts Act

Subjects: Finance and Financial Sector


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 825 Introduced in Senate (IS)]

&lt;DOC&gt;






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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting Consumers from Bailouts 
Act''.

SEC. 2. LIMITATION ON SPECIAL ASSESSMENTS ON COMMUNITY BANKS.

    (a) In General.--The Federal Deposit Insurance Corporation may not 
impose an assessment on any bank with less than $10,000,000,000 in 
total assets in imposing a special assessment under section 
13(c)(4)(G)(ii) of the Federal Deposit Insurance Act (12 U.S.C. 
1823(c)(4)(G)(ii)).
    (b) Prohibition on Increase of Fees to Customers.--
            (1) In general.--No institution required to pay a special 
        assessment under section 13(c)(4)(G)(ii) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1823(c)(4)(G)(ii)) in connection with 
        the resolution of Silicon Valley Bank and Signature Bank in 
        March 2023 by the Department of the Treasury shall increase any 
        fees or charges to customers of the institution in an attempt 
        to offset the costs of the special assessment.
            (2) Civil penalty.--A violation of paragraph (1) shall 
        constitute a failure to pay an assessment under section 18(h) 
        of the Federal Deposit Insurance Act (12 U.S.C. 1828(h)).

SEC. 3. FDIC BONUS CLAWBACK AUTHORITY.

    Section 23(c)(4)(G) of the Federal Deposit Insurance Act (12 U.S.C. 
1823(c)(4)(G)) is amended by adding at the end the following:
                            ``(vi) Incentive-based compensation claw 
                        back.--
                                    ``(I) Definition.--In this clause:
                                            ``(aa) Incentive-based 
                                        compensation.--The term 
                                        `incentive-based compensation' 
                                        includes any compensation that 
                                        is granted, earned, or vested 
                                        based wholly or in part upon 
                                        the attainment of any financial 
                                        reporting measure or other 
                                        performance metric.
                                            ``(bb) Officer.--The term 
                                        `officer' has the meaning given 
                                        the term in section 240.16a-1 
                                        of title 17, Code of Federal 
                                        Regulations.
                                    ``(II) Clawback.--
                                            ``(aa) In general.--If the 
                                        Corporation takes other action 
                                        or provides assistance under 
                                        this subparagraph, the 
                                        Corporation shall have 
                                        authority to seek reimbursement 
                                        to the Deposit Insurance Fund 
                                        any amount of incentive-based 
                                        compensation paid to an officer 
                                        of an insured depository 
                                        institution for which the 
                                        Corporation is appointed 
                                        receiver during the 1-year 
                                        period ending on the date on 
                                        which such appointment is made.
                                            ``(bb) Civil penalty.--Any 
                                        officer who fails to reimburse 
                                        the Deposit Insurance Fund 
                                        under item (aa) shall be liable 
                                        to the United States for a 
                                        civil penalty equal to 3 times 
                                        the amount of the incentive-
                                        based compensation received by 
                                        the officer.''.
                                 &lt;all&gt;
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