Warren, Hawley, Cortez Masto, Gallego, Britt Lead Senators in Reintroducing Bill to Hold Executives Accountable After Big Bank Failures

Warren, Hawley, Cortez Masto, Gallego, Britt Lead Senators in Reintroducing Bill to Hold Executives Accountable After Big Bank Failures

Bill reintroduction comes three years after Silicon Valley Bank's failure

The bill requires the Federal Deposit Insurance Corporation (FDIC) to claw back all or part of the compensation large bank executives received over the three-year period preceding a bank's failure.

Bill Text | Fact Sheet

Washington, D.C. - Today, U.S. Senators Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, Josh Hawley (R-MO), Catherine Cortez Masto (D-NV), Ruben Gallego (D-AZ), Katie Britt (R-AL), and nine additional Senators are reintroducing The Failed Bank Executives Clawback Act of 2026, which would help ensure that big bank executives are not allowed to collect massive paychecks and bonuses, disregard prudent risk management, and walk away scot-free if the bank blows up.

The bill would require the Federal Deposit Insurance Corporation (FDIC) to hold executives of large failed banks - like Silicon Valley Bank, which failed three years ago today - financially responsible for some of the costs those failures impose on the rest of the banking system and the economy. The FDIC would have to claw back all or part of the compensation large bank executives received over the three-year period preceding a bank's failure.

The Failed Bank Executives Clawback Act of 2026 is co-sponsored by Kevin Cramer (R-ND), Mark Warner (D-VA), Chris Van Hollen (D-MD), Tina Smith (D-MN), Andy Kim (D-NJ), Raphael Warnock (D-GA), John Fetterman (D-PA), Lisa Blunt Rochester (D-DE), Angela Alsobrooks (D-MD).

"When big banks fail, weak regulators too often let the failed bank's wealthy executives slip away into the night while American taxpayers foot the bill," said Ranking Member Warren. "This bill helps ensure that failed bank executives are held accountable for their risk-taking - and that they forfeit the huge bonuses they got while driving their bank into the ground."

"Bank executives who make risky investments with customers' money shouldn't be permitted to profit in the good times, and then avoid financial consequences when things go south," said Senator Hawley. "This legislation puts the executives' own profits on the line, and that's exactly as it should be."

"Executives at major financial institutions should not get to make out like bandits after running their banks into the ground," said Senator Cortez Masto. "We saw this happen with Silicon Valley Bank three years ago - when the bank failed, its leadership had already sold millions in company stock. Our bipartisan legislation will ensure these individuals are held accountable for threatening the financial stability of businesses and families in Nevada and nationwide."

"When Silicon Valley Bank went under, hundreds of Arizonans lost their jobs, and thousands more lost their investments and savings. Meanwhile, the same irresponsible c-suite executives who ran the bank to the ground cashed in tens of millions of dollars in bonuses and stock then left the taxpayers holding the bag. That's not how our system should work," said Senator Gallego. "This bill would hold bank executives financially accountable and make sure they aren't able to walk away rich while hardworking Americans lose their savings and jobs."

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