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I
118TH CONGRESS
1ST SESSION H. R. 4207
To prohibit a large banking institution from paying discretionary bonus pay-
ments 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.
IN THE HOUSE OF REPRESENTATIVES
JUNE 20, 2023
Ms. PETTERSEN introduced the following bill; which was referred to the
Committee on Financial Services
A BILL
To prohibit a large banking institution from paying discre-
tionary 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.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Stopping Bonuses for
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Unsafe and Unsound Banking Act’’.
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SEC. 2. FREEZE ON DISCRETIONARY BONUS PAYMENTS BY
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LARGE BANKING INSTITUTIONS IN CERTAIN
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CIRCUMSTANCES.
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(a) IN GENERAL.—If the appropriate Federal bank-
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ing agency issues a ‘‘matter requiring immediate atten-
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tion’’ (or similar supervisory notice) to a covered banking
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institution, the institution may not make any discretionary
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bonus payment to a senior executive officer until the mat-
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ter is resolved to the satisfaction of the appropriate Fed-
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eral banking agency.
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(b) REMEDIATION PLAN EXCEPTION.—Subsection
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(a) shall not apply to a covered banking institution receiv-
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ing a ‘‘matter requiring immediate attention’’ (or similar
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supervisory notice)—
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(1) during the period beginning on the date the
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covered banking institution receives the ‘‘matter re-
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quiring immediate attention’’ (or similar supervisory
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notice) and ending on the date of the deadline de-
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scribed under paragraph (2) to submit a remediation
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plan; and
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(2) if the covered banking institution provides
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the appropriate Federal banking agency with a re-
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mediation plan (which shall include an implementa-
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tion period) to correct the matter that is accepted by
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the appropriate Federal banking agency by such
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deadline as determined by the appropriate Federal
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•HR 4207 IH
banking agency, during the period beginning on the
1
date the remediation plan is accepted and the end of
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the implementation period.
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(c) DEFINITIONS.—In this section:
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(1) COVERED
BANKING
INSTITUTION.—The
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term ‘‘covered banking institution’’ means—
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(A) a bank holding company with more
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than $50,000,000,000 in consolidated assets;
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(B) a bank subsidiary of a bank holding
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company described under subparagraph (A);
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and
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(C) a bank that does not have a bank hold-
12
ing
company
and
that
has
more
than
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$50,000,000,000 in consolidated assets.
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(2) OTHER
TERMS.—The terms ‘‘appropriate
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Federal banking agency’’, ‘‘bank’’, ‘‘bank holding
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company’’, and ‘‘Federal banking agency’’ have the
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meanings given those terms, respectively, under sec-
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tion 3 of the Federal Deposit Insurance Act.
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Æ
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