H.R. 6705

119 HR 6705 IH: Stopping Bonuses for Unsafe and Unsound Banking Act
 U.S. House of Representatives
 2025-12-15
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 I  119th CONGRESS  1st Session  H. R. 6705  IN THE HOUSE OF REPRESENTATIVES   December 15, 2025   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 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.
1.
Short title
This Act may be cited as the   Stopping Bonuses for Unsafe and Unsound Banking Act  .
2.
Freeze on discretionary bonus payments by large banking institutions in certain circumstances
(a)
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.
(b)
Remediation plan exception
Subsection (a) shall not apply to a covered banking institution receiving a  matter requiring immediate attention  (or similar supervisory notice)—
(1)
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
(2)
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.
(c)
Definitions
In this section:
(1)
Covered banking institution
The term  covered banking institution  means—
(A)
a bank holding company with more than $50,000,000,000 in consolidated assets;
(B)
a bank subsidiary of a bank holding company described under subparagraph (A); and
(C)
a bank that does not have a bank holding company and that has more than $50,000,000,000 in consolidated assets.
(2)
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.