I 
118TH CONGRESS 
1ST SESSION H. R. 2972 
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 HOUSE OF REPRESENTATIVES 
APRIL 27, 2023 
Ms. PORTER (for herself, Mrs. SPARTZ, Mr. GALLEGO, Mr. BUCK, and Ms. 
PEREZ) introduced the following bill; which was referred to the Com-
mittee on Financial Services 
A BILL 
To amend the Federal Deposit Insurance Act to clarify that 
the Federal Deposit Insurance Corporation and appro-
priate Federal regulators have the authority to claw back 
certain compensation paid to executives. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Failed Bank Execu-
tives Clawback Act’’. 
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SEC. 2. CLAW BACK. 
Section 8(b) of the Federal Deposit Insurance Act 
(12 U.S.C. 1818(b)) is amended by inserting after para-
graph (8) the following: 
‘‘(9) CLAWBACK.— 
‘‘(A) DEFINITION.—In this paragraph, the 
term ‘covered compensation’ means— 
‘‘(i) salary; 
‘‘(ii) bonuses; 
‘‘(iii) any compensation that is grant-
ed, earned, or vested based wholly or in 
part upon the attainment of any financial 
reporting measure or other performance 
metric; 
‘‘(iv) equity-based compensation; 
‘‘(v) time- or service-based awards; 
‘‘(vi) awards based on nonfinancial 
metrics; and 
‘‘(vii) any profits realized from the 
buying or selling of securities. 
‘‘(B) CLAWBACK.— 
‘‘(i) LIABILITY
OF
INSTITUTION-AF-
FILIATED PARTY.—An institution-affiliated 
party that is substantially responsible for 
the condition of the insured depository in-
stitution is liable to the Corporation for 
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any covered compensation clawed back 
under clause (ii). 
‘‘(ii) REQUIRED CLAWBACKS.—In the 
case of insolvency or resolution of any in-
sured depository institution, the Corpora-
tion shall claw back all or part of the cov-
ered compensation received by an institu-
tion-affiliated party during the preceding 5 
years as is necessary to prevent unjust en-
richment and assure that the party bears 
losses consistent with the responsibility of 
the party. 
‘‘(iii) DEPOSIT.—Any covered com-
pensation clawed back under this subpara-
graph shall be deposited into the Deposit 
Insurance Fund or into the general fund of 
the Treasury.’’. 
SEC. 3. ORDERLY LIQUIDATION OF COVERED FINANCIAL 
COMPANIES. 
Section 204 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (12 U.S.C. 5384) is amend-
ed by adding at the end the following: 
‘‘(e) CLAWBACK.— 
‘‘(1) DEFINITION.—In this subsection, the term 
‘covered compensation’ means— 
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‘‘(A) salary; 
‘‘(B) bonuses; 
‘‘(C) any compensation that is granted, 
earned, or vested based wholly or in part upon 
the attainment of any financial reporting meas-
ure or other performance metric; 
‘‘(D) equity-based compensation; 
‘‘(E) time- or service-based awards; 
‘‘(F) 
awards 
based 
on 
nonfinancial 
metrics; and 
‘‘(G) any profits realized from the buying 
or selling of securities. 
‘‘(2) CLAWBACK.— 
‘‘(A) LIABILITY
OF
INSTITUTION-AFFILI-
ATED
PARTY.—An institution-affiliated party 
that is substantially responsible for the condi-
tion of a covered financial company is liable to 
the Corporation for any covered compensation 
clawed back under subparagraph (B). 
‘‘(B) REQUIRED CLAWBACKS.—In the case 
of insolvency or resolution of any covered finan-
cial company, the Corporation shall claw back 
all or part of the covered compensation received 
by an institution-affiliated party during the pre-
ceding 5 years as is necessary to prevent unjust 
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enrichment and assure that the party bears 
losses consistent with the responsibility of the 
party. 
‘‘(C) DEPOSIT.—Any covered compensa-
tion clawed back under this subparagraph shall 
be deposited into the Deposit Insurance Fund 
or into the general fund of the Treasury.’’. 
SEC. 4. LIABILITY TO THE FEDERAL DEPOSIT INSURANCE 
CORPORATION. 
The Bank Holding Company Act (12 U.S.C. 1841 
et seq.) is amended by adding at the end the following: 
‘‘SEC. 15. LIABILITY TO THE FEDERAL DEPOSIT INSURANCE 
CORPORATION. 
‘‘(a) IN GENERAL.—Any bank holding company that 
has control over an insured depository institution for 
which the Corporation is appointed and acts as receiver 
under section 11 of the Federal Deposit Insurance Cor-
poration Act shall be liable to the Corporation for— 
‘‘(1) any payments from the Deposit Insurance 
Fund established under section 11 of the Federal 
Deposit Insurance Act to insured depositors of such 
insured depository institution; 
‘‘(2) any costs incurred by the Corporation as 
receiver of such insured depository institution; and 
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‘‘(3) any interest on the amounts described in 
paragraphs (1) and (2). 
‘‘(b) LIEN AGAINST ALL ASSETS.— 
‘‘(1) IN
GENERAL.—Any liability of a bank 
holding company to the Corporation under sub-
section (a) shall be secured by a lien on all assets 
of such bank holding company. 
‘‘(2) SPECIFICATIONS.—Any lien arising under 
this subsection— 
‘‘(A) shall be deemed to be automatically 
perfected; 
‘‘(B) shall have priority over all other liens, 
irrespective of their date of creation or perfec-
tion; and 
‘‘(C) may not be avoided in a proceeding 
under title 11, United States Code. 
‘‘(c) PRIORITY OF LIABILITY.— 
‘‘(1) IN
GENERAL.—Any liability of a bank 
holding company to the Corporation under sub-
section (a) shall have payment priority over all other 
liabilities of and interests in the bank holding com-
pany. 
‘‘(2) CLARIFYING RULE.—No payment shall be 
made to any other creditor or shareholder of the 
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bank holding company until the liability to the Cor-
poration under this section has been paid in full. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) INSURED DEPOSITORY INSTITUTION.—The 
term ‘insured depository institution’ has the mean-
ing given the term in section 3 of the Federal De-
posit Insurance Act. 
‘‘(2) CORPORATION.—The term ‘Corporation’ 
means the Federal Deposit Insurance Corporation.’’. 
Æ 
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