118 HR 4207 IH: Stopping Bonuses for Unsafe and Unsound Banking Act U.S. House of Representatives 2023-06-20 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I118th CONGRESS1st SessionH. R. 4207IN THE HOUSE OF REPRESENTATIVESJune 20, 2023Ms. Pettersen introduced the following bill; which was referred to the Committee on Financial ServicesA BILLTo 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.