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Stopping Bonuses for Unsafe and Unsound Banking Act

12/15/2023, 3:59 PM

Summary of Bill HR 4207

Bill 118 hr 4207, also known as the Stopping Bonuses for Unsafe and Unsound Banking Act, aims to address the issue of financial institutions rewarding employees with bonuses for engaging in risky and irresponsible behavior that could potentially harm the economy. The bill seeks to prevent banks from providing bonuses to employees who engage in practices that could jeopardize the stability of the financial system.

Under this legislation, financial institutions would be required to establish policies and procedures to identify and prevent employees from receiving bonuses for engaging in unsafe and unsound banking practices. Additionally, the bill would mandate that regulators closely monitor and enforce compliance with these policies to ensure that banks are not incentivizing risky behavior.

The Stopping Bonuses for Unsafe and Unsound Banking Act is designed to promote responsible and ethical behavior within the banking industry, ultimately aiming to protect the economy from the negative consequences of reckless financial practices. This bill has garnered bipartisan support in Congress, with lawmakers recognizing the importance of holding financial institutions accountable for their actions and promoting stability within the banking sector.

Congressional Summary of HR 4207

Stopping Bonuses for Unsafe and Unsound Banking Act

This bill prohibits large banking institutions from paying discretionary bonuses to senior executive officers while under a supervisory notice issued by a banking regulator. The bill provides exceptions for the time period before a remediation plan is due and while a remediation plan is being implemented.

Current Status of Bill HR 4207

Bill HR 4207 is currently in the status of Bill Introduced since June 20, 2023. Bill HR 4207 was introduced during Congress 118 and was introduced to the House on June 20, 2023.  Bill HR 4207's most recent activity was Referred to the House Committee on Financial Services. as of June 20, 2023

Bipartisan Support of Bill HR 4207

Total Number of Sponsors
1
Democrat Sponsors
1
Republican Sponsors
0
Unaffiliated Sponsors
0
Total Number of Cosponsors
0
Democrat Cosponsors
0
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill HR 4207

Primary Policy Focus

Finance and Financial Sector

Alternate Title(s) of Bill HR 4207

Stopping Bonuses for Unsafe and Unsound Banking Act
Stopping Bonuses for Unsafe and Unsound Banking Act
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.

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