Section 1 Short title
This Act may be cited as the “Stopping Bonuses for Unsafe and Unsound Banking Act”.
Stopping Bonuses for Unsafe and Unsound Banking Act
A BILL
To prohibit a large banking institution from paying discretionary 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.
Sec. 2 Freeze on discretionary bonus payments by large banking institutions in certain circumstances
In general— If the appropriate Federal banking agency issues a “matter requiring immediate attention” (or similar supervisory notice) to a covered banking institution, the institution may not make any discretionary bonus payment to a senior executive officer until the matter is resolved to the satisfaction of the appropriate Federal banking agency.
Remediation plan exception— Subsection (a) shall not apply to a covered banking institution receiving a “matter requiring immediate attention” (or similar supervisory notice)—
during the period beginning on the date the covered banking institution receives the “matter requiring immediate attention” (or similar supervisory notice) and ending on the date of the deadline described under paragraph (2) to submit a remediation plan; and
if the covered banking institution provides the appropriate Federal banking agency with a remediation plan (which shall include an implementation period) to correct the matter that is accepted by the appropriate Federal banking agency by such deadline as determined by the appropriate Federal banking agency, during the period beginning on the date the remediation plan is accepted and the end of the implementation period.
Definitions— In this section:
Covered banking institution— The term covered banking institution means—
a bank holding company with more than $50,000,000,000 in consolidated assets;
a bank subsidiary of a bank holding company described under subparagraph (A); and
a bank that does not have a bank holding company and that has more than $50,000,000,000 in consolidated assets.
Other terms— The terms appropriate Federal banking agency, bank, bank holding company, and Federal banking agency have the meanings given those terms, respectively, under section 3 of the Federal Deposit Insurance Act.