Section 1 Short title
This Act may be cited as the “Protecting Consumers from Bailouts Act”.
Protecting Consumers from Bailouts Act
A BILL
To provide limitations of special assessments on community banks, and for other purposes.
Sec. 2 Limitation on special assessments on community banks
In general— The Federal Deposit Insurance Corporation may not impose an assessment on any bank with less than $10,000,000,000 in total assets in imposing a special assessment under section 13(c)(4)(G)(ii) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)(G)(ii)).
Prohibition on increase of fees to customers—
In general— No institution required to pay a special assessment under section 13(c)(4)(G)(ii) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)(G)(ii)) in connection with the resolution of Silicon Valley Bank and Signature Bank in March 2023 by the Department of the Treasury shall increase any fees or charges to customers of the institution in an attempt to offset the costs of the special assessment.
Civil penalty— A violation of paragraph (1) shall constitute a failure to pay an assessment under section 18(h) of the Federal Deposit Insurance Act (12 U.S.C. 1828(h)).
Sec. 3 FDIC bonus clawback authority
Section 23(c)(4)(G) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)(G)) is amended by adding at the end the following:
“(vi) Incentive-based compensation claw back
“(I) Definition—In this clause:
“(aa) Incentive-based compensation—The term incentive-based compensation includes any compensation that is granted, earned, or vested based wholly or in part upon the attainment of any financial reporting measure or other performance metric.
“(bb) Officer—The term officer has the meaning given the term in section 240.16a–1 of title 17, Code of Federal Regulations.
“(II) Clawback
“(aa) In general—If the Corporation takes other action or provides assistance under this subparagraph, the Corporation shall have authority to seek reimbursement to the Deposit Insurance Fund any amount of incentive-based compensation paid to an officer of an insured depository institution for which the Corporation is appointed receiver during the 1-year period ending on the date on which such appointment is made.
“(bb) Civil penalty—Any officer who fails to reimburse the Deposit Insurance Fund under item (aa) shall be liable to the United States for a civil penalty equal to 3 times the amount of the incentive-based compensation received by the officer.”