Failed Bank Executives Clawback Act

This legislation amends the Federal Deposit Insurance Act to significantly enhance the Federal Deposit Insurance Corporation's (FDIC) authority to recover compensation from individuals associated with failed large banks. It mandates the FDIC to claw back certain compensation from executives and other responsible parties of insured depository institutions with total assets exceeding $10 billion . This action is triggered upon the institution's insolvency, resolution, or the FDIC's appointment as receiver. The bill broadly defines "covered compensation" to include salaries, bonuses, equity, and profits from securities trading, applying to amounts received during the three years preceding the institution's failure. "Covered parties" encompass directors, officers, controlling stockholders, and other individuals deemed primarily responsible for the institution's failed condition. All funds recovered through these clawbacks would be deposited into the Deposit Insurance Fund . Additionally, the bill clarifies the FDIC's authority under the Dodd-Frank Act to prohibit or limit compensation for any financial company for which it is appointed receiver, irrespective of the appointment process.