Senators led by the ranking member of the U.S. Senate Committee on Banking, Housing and Urban Affairs have reintroduced the Failed Bank Executives Clawback Act of 2026, a proposal that would require the Federal Deposit Insurance Corporation (FDIC) to recoup compensation from executives of large banks that fail. The bill would mandate clawbacks of all or part of the compensation received during the three-year period preceding a bank’s failure. The measure is framed as a way to make executives of large failed banks financially responsible for some of the costs those failures impose on the banking system and the economy, citing Silicon Valley Bank’s failure as a reference point. Co-sponsors named in the release include Kevin Cramer, Mark Warner, Chris Van Hollen, Tina Smith, Andy Kim, Raphael Warnock, John Fetterman, Lisa Blunt Rochester, and Angela Alsobrooks.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2026-03-11
U.S. Senate Committee on Banking, Housing and Urban Affairs senators reintroduce bill requiring FDIC clawbacks of large failed-bank executives’ compensation
The U.S. Senate Committee on Banking, Housing and Urban Affairs has reintroduced the Failed Bank Executives Clawback Act of 2026, mandating the FDIC to reclaim compensation from executives of large banks that fail. The bill targets compensation received in the three years prior to a bank's failure, with Silicon Valley Bank cited as a reference. Co-sponsors include Senators Kevin Cramer, Mark Warner, Chris Van Hollen, Tina Smith, Andy Kim, Raphael Warnock, John Fetterman, Lisa Blunt Rochester, and Angela Alsobrooks.