Stopping Bonuses for Unsafe and Unsound Banking Act

Bill: 118-hr-4207
Sponsor: full_name: Rep. Pettersen, Brittany [D-CO-7]
Introduced: 2023-06-20
Policy area: Finance and Financial Sector
Latest action: action_date: 2023-06-20
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2023-06-20
action_desc: Introduced in House
text: <p><b>Stopping Bonuses for Unsafe and Unsound Banking Act </b></p> <p>This bill prohibits large banking institutions from paying discretionary bonuses to senior executive officers while under a supervisory notice issued by a banking regulator. The bill provides exceptions for the time period before a remediation plan is due and while a remediation plan is being implemented. </p>

tv_txt: I 118th CONGRESS 1st Session H. R. 4207 IN THE HOUSE OF REPRESENTATIVES June 20, 2023 Ms. Pettersen introduced the following bill; which was referred to the Committee on Financial Services A BILL To prohibit a large banking institution from paying discretionary bonus payments when the institution is subject to a Matter Requiring Immediate Attention and does not provide the appropriate Federal banking agency with a remediation plan to correct the matter, and for other purposes.

1. Short title This Act may be cited as the Stopping Bonuses for Unsafe and Unsound Banking Act . 2. Freeze on discretionary bonus payments by large banking institutions in certain circumstances (a) In general If the appropriate Federal banking agency issues a matter requiring immediate attention (or similar supervisory notice) to a covered banking institution, the institution may not make any discretionary bonus payment to a senior executive officer until the matter is resolved to the satisfaction of the appropriate Federal banking agency. (b) Remediation plan exception Subsection (a) shall not apply to a covered banking institution receiving a matter requiring immediate attention (or similar supervisory notice)— (1) during the period beginning on the date the covered banking institution receives the matter requiring immediate attention (or similar supervisory notice) and ending on the date of the deadline described under paragraph (2) to submit a remediation plan; and (2) if the covered banking institution provides the appropriate Federal banking agency with a remediation plan (which shall include an implementation period) to correct the matter that is accepted by the appropriate Federal banking agency by such deadline as determined by the appropriate Federal banking agency, during the period beginning on the date the remediation plan is accepted and the end of the implementation period. (c) Definitions In this section: (1) Covered banking institution The term covered banking institution means— (A) a bank holding company with more than $50,000,000,000 in consolidated assets; (B) a bank subsidiary of a bank holding company described under subparagraph (A); and (C) a bank that does not have a bank holding company and that has more than $50,000,000,000 in consolidated assets. (2) Other terms The terms appropriate Federal banking agency , bank , bank holding company , and Federal banking agency have the meanings given those terms, respectively, under section 3 of the Federal Deposit Insurance Act.