This bill aims to significantly strengthen the ability of federal financial regulators to hold executive officers and directors of failed financial institutions accountable for their actions. It expands existing enforcement tools, particularly focusing on instances where executive negligence or misconduct leads to financial loss and institutional failure. The legislation emphasizes the need for robust clawback requirements and calls for regulators to fully utilize their authorities against those responsible for bank failures. A key provision grants the Federal Deposit Insurance Corporation (FDIC) new clawback authority . As a conservator or receiver, the FDIC can recover compensation received within a two-year period from any current or former executive officer or director whose negligence caused financial loss to an insured depository institution or covered financial company. In cases of fraud , this two-year time limit for clawback does not apply, allowing for recovery without temporal restriction. The bill broadly defines "compensation" to include salary, bonuses, benefits, severance, deferred compensation, and profits from securities sales. Furthermore, the bill enhances regulators' ability to prohibit individuals from the financial industry and imposes new civil penalties. Federal banking agencies can now issue orders to prohibit future participation in any insured depository institution for executives who negligently caused financial loss to a failed institution. New civil money penalties are established, including a first-tier penalty of up to $25,000 per day for executives who negligently cause financial loss to a failed institution, and a higher second-tier penalty for those who act knowingly or recklessly.