The "Bank Failure Accountability Act" aims to address financial misconduct and misaligned incentives within large financial institutions. It requires covered financial institutions, those with over $1 billion in consolidated assets, to establish a dedicated deferment fund. This fund will hold a portion of senior employees' compensation, specifically at least 50% of the amount exceeding seven times the median employee's pay. The primary purpose of these deferred funds is to cover civil or criminal fines imposed on the institution or its subsidiaries. For failing depository institutions or credit unions, the funds must first be utilized to ensure depositors are made whole before any federal deposit insurance funds are used. The bill specifies varying deferment periods , ranging from two to eight years, based on the size of the financial institution. If the deferment fund lacks sufficient resources to repay the deferred compensation after the specified period, the unpaid amounts are canceled. Provisions also ensure that deferred compensation for former employees is segregated and only used for fines related to their tenure or repaid to them. Various federal financial regulators are authorized to issue rules to implement these new compensation deferment requirements.