Bank Failure Accountability Act

Sponsor: Rashida Tlaib (Democratic-MI)June 25, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on Financial Services.

Requires big banks to hold back senior employee pay to cover fines or protect customer deposits.

This bill would require large financial institutions to set aside a portion of their senior employees' pay. This money would first be used to pay any fines the institution receives or to cover customer deposits if the bank fails. This changes how financial institutions currently pay fines and protect depositors.

What Would Change

Today, senior employees at financial institutions receive their full compensation, and institutions pay fines from their general funds. If a bank fails, federal insurance funds cover depositor losses. This bill would require large financial institutions to defer at least 50 percent of senior employee pay above a certain threshold. These funds would first be used to pay fines or protect customer deposits. This would happen before federal insurance funds are tapped.

Key Provisions

Requires large financial institutions to set up special funds for deferred pay.
Requires these institutions to hold back at least 50 percent of senior employee pay that exceeds 7 times the median employee's pay.
Requires institutions to use these deferred pay funds first to pay any civil or criminal fines they receive.
Requires failing banks and credit unions to use these funds to protect customer deposits before federal insurance kicks in.
Cancels deferred pay for senior employees if the fund runs out of money due to fines or failures.
Protects deferred pay for ex-employees from fines for misconduct that happened after they left.

View on Congress.gov

HR 9490 · 119th Congress · June 25, 2026 · AI Summary by gemini-2.5-flash · 10/10

Bank Failure Accountability Act

What Would Change

Key Provisions

Lobbying Activity