Sponsors (14)
The bill strengthens the FDIC's ability to recover ill‑gotten compensation and deters executive misconduct—improving protection for depositors and accountability—while creating uncertainty, expanded clawback exposure, and added legal and compliance costs for banks, employees, creditors, and possibly taxpayers.
Depositors and the public: recovered compensation is deposited into the Deposit Insurance Fund, strengthening its resources and protecting insured deposits.
Bank customers and taxpayers: making high‑paid insiders personally liable for pay tied to misconduct creates a financial deterrent against risky or fraudulent conduct at large banks.
FDIC, regulators, and the public: provides a clear statutory tool to recoup ill‑gotten pay after insolvency or resolution, improving accountability in bank resolutions.
Bank executives and employees: a broad definition of “covered compensation” could expose many types of pay (including equity and nonfinancial awards) to clawback, creating uncertainty and potential loss of earned pay.
Large banks, creditors, and taxpayers: potential liability for clawbacks and related enforcement can increase legal, compliance, and litigation costs during and after failures, which may reduce recoveries available to other creditors, prolong resolution processes, and impose costs on taxpayers.
Prospective hires and compensation designers at financial firms: fear of clawback exposure may complicate recruitment and compensation design, weakening banks' ability to compete for talent.
Based on analysis of 6 sections of legislative text.
Gives the FDIC power to claw back certain compensation from covered parties of failed or resolved banks over $10 billion and deposit recoveries into the Deposit Insurance Fund.
Creates a statutory clawback that lets the FDIC recover certain compensation from executives and related parties of large insured banks (those with assets over $10 billion) when the institution’s failure or resolution caused significant losses. Recovered funds must be deposited into the Deposit Insurance Fund. The bill also clarifies receiver-trigger language in an existing provision to specify that certain authorities apply when the FDIC is appointed receiver, regardless of how that appointment occurs.
Official title: 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, and for other purposes.
Introduced March 11, 2026 by Elizabeth Warren · Last progress March 11, 2026