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RECOUP Act of 2023
5/30/2024, 9:50 PM
Summary of Bill S 2190
One of the key provisions of the RECOUP Act is the establishment of a new oversight body called the Recovery Oversight Council. This council would be responsible for reviewing and monitoring federal spending to identify any instances of waste, fraud, or abuse. The council would have the authority to recommend corrective actions to federal agencies and report any findings to Congress.
Additionally, the RECOUP Act includes measures to increase transparency and accountability in government spending. The bill requires federal agencies to regularly report on their spending activities and provide detailed justifications for any expenditures. It also includes provisions to strengthen whistleblower protections for individuals who report instances of waste or fraud. Overall, the RECOUP Act of 2023 aims to promote responsible and efficient use of taxpayer dollars by holding federal agencies accountable for their spending decisions. The bill is currently being debated in Congress, with supporters arguing that it is necessary to prevent wasteful spending and protect the interests of taxpayers.
Congressional Summary of S 2190
Recovering Executive Compensation Obtained from Unaccountable Practices Act of 2023 or the RECOUP Act of 2023
This bill establishes additional authorities for federal banking agencies and sets forth requirements for insured depository institutions with assets over a specified amount to address their safety and soundness.
In the event of institutional failure, the bill establishes the authority to recover from a senior executive bonus compensation and profits from the sale of securities received during the 24-month period preceding the failure. Federal banking authorities also have the authority at an institution of any size to remove from office a senior executive in cases of gross negligence, breach of fiduciary duty, or failure to carry out specified responsibilities.
The bill also requires depository institutions and depository institution holding companies to adopt governance and accountability standards that promote safety and soundness, responsiveness to supervisory matters, and responsible management.
In addition, the bill increases the cap on civil penalties for associated violations. It also expands certain violations to cover senior executives who recklessly (instead of knowingly) violate the law.
Finally, the bill requires various reports. Federal banking agencies must publish a report after the failure of an institution. The Board of Governors of the Federal Reserve System must report semiannually on the supervisory and regulatory policies and actions of the Board. After an insured depository institution enters receivership, the inspector general of the appropriate federal regulator must report on the regulator's supervisory performance with respect to that institution.
