Stopping Bonuses for Unsafe and Unsound Banking Act
Summary
What This Bill Does
The Stopping Bonuses for Unsafe and Unsound Banking Act applies to large banking institutions: bank holding companies with more than 50 billion dollars in consolidated assets, their bank subsidiaries, and standalone banks above the same threshold. If the appropriate federal banking agency issues a matter requiring immediate attention or similar supervisory notice, the institution may not make discretionary bonus payments to senior executive officers until the matter is resolved to the agency satisfaction. The freeze does not apply during the initial period before the remediation-plan deadline, and it also does not apply during an accepted remediation implementation period if the institution submits a plan accepted by the agency by the agency deadline.
Who Benefits and How
Bank regulators, depositors, taxpayers, and financial stability advocates benefit because senior executive bonuses are tied more closely to resolving serious supervisory concerns. Large banks with accepted remediation plans benefit from a safe period to fix issues without an immediate bonus freeze.
Who Bears the Burden and How
Large banking institutions must track supervisory notices, submit acceptable remediation plans, manage implementation periods, and withhold discretionary senior executive bonuses when matters remain unresolved. Senior executive officers at covered banks bear direct compensation risk, and federal banking agencies must decide when matters are resolved or remediation plans are acceptable.
Key Provisions
- Requires large banking institutions to freeze discretionary senior executive bonuses after immediate supervisory attention notices.
- Provides exceptions before the remediation-plan deadline and during accepted remediation implementation periods.
- Defines covered banking institutions as bank holding companies, subsidiaries, or standalone banks above 50 billion dollars in assets.
- Requires federal banking agencies to determine when supervisory matters are resolved or remediation plans are accepted.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Freezes discretionary bonuses for senior executives at large banking institutions while unresolved immediate supervisory attention matters remain open.
Key Policy Areas
Financial Services, Government
Primary Purpose
Freezes discretionary bonuses for senior executives at large banking institutions while unresolved immediate supervisory attention matters remain open.
Policy Domains
Substantive provisions
Identified Gains
- bank regulators
- depositors
- taxpayers
- financial stability advocates
Identified Costs
- large banking institutions
- senior executive officers
- federal banking agencies
Legislative Progress
In CommitteeMs. Pettersen introduced the following bill; which was referred to …
Referred to the House Committee on Financial Services.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
large banking institutions with unresolved supervisory notices, senior executive officers at covered banks
federal banking agencies supervising remediation plans
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "appropriate Federal banking agency"
- → Federal banking agency with supervisory authority under the Federal Deposit Insurance Act
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology