,i #aafth ,,congress #ast ,session ,h4 ,r4 #chhe ,,in ,,the ,,house ,,of ,,representatives ,july #bc1 #bjai,ms4 ,gabbard introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to amend the ,bank ,holding ,company ,act of #aief to defer part of the compensation of senior employees of large bank holding companies 7and their subsidiaries7 for #aj years1 to use such deferred amounts to pay any civil or criminal fines that may be levied on the bank holding company 7or subsidiary71 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,wall ,street ,banker ,accountability for ,misconduct ,act of #bjai4 #b4 ,findings ,the ,congress finds the following3 7#a7 ,senior employees of major bank holding companies receive extraordinary pay packages1 even when they oversee massive frauds and financial misconduct4 7#b7 ,widespread financial misconduct by individual ,wall ,street bankers led to the #bjjh financial crisis1 which caused the ,great ,recession4 ,the ,department of ,justice brought litigation against every major bank1 resulting in more than #afc1jjj1jjj1jjj in fines4 7#c7 ,this misconduct resulted from the actions of individuals and was a direct result of a banking culture that rewards bad behavior4 7#d7 ,despite the actions of individuals1 ,wall ,street banks paid billions of dollars in fines out of monies that otherwise were owned and could be paid in dividends to shareholders4 ,while culpable bankers continued to receive extraordinary pay1 innocent shareholders paid the price for banker misconduct4 7#e7 ,in the aftermath of the ,great ,recession1 and after further misconduct in the financial services industry1 the ,federal ,reserve ,bank of ,new ,york has urged financial firms to reevaluate and reform their compensation incentive structures to align with shareholders and customers interests4 7#f7 ,misaligned incentives within the banking industry continue to fail to hold ,wall ,street executives and their senior employees accountable for their actions4 #c4 ,deferment of senior employee compensation ,the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda et seq47 is amended by inserting after section #e the following3 #f4 ,deferment of senior employee compensation 7a7 ,deferment fund ,each covered bank holding company and each subsidiary of a covered bank holding company shall establish a deferment fund1 which shall-- 7#a7 only contain compensation deferred under subsection 7b72 and 7#b7 only be used as permitted by this section4 7b7 ,deferment of compensation ,each covered bank holding company and each subsidiary of a covered bank holding company shall-- 7#a7 each year1 defer the compensation of each senior employee of the bank holding company or subsidiary in an amount equal to at least #ej percent of the amount that the employee's total compensation for the year exceeds #aj times the compensation of the median paid employee of the consolidated bank holding company for the year2 7#b7 place all compensation deferred under paragraph 7#a7 into the deferment fund of the bank holding company or subsidiary2 and 7#c7 after the end of the #aj-year period beginning on the date the compensation was deferred1 if sufficient funds remain in the deferment fund1 pay the senior employee the amount of compensation deferred at the beginning of the #aj-year period4 7c7 ,use of deferment fund ,to pay fines ,if a covered bank holding company or subsidiary of a covered bank holding company is subject to a civil or criminal fine1 the bank holding company or subsidiary shall first pay such fine out of amounts contained in the deferment fund of the bank holding company or subsidiary4 7d7 ,cancellation of compensation that cannot be paid from deferment fund ,each covered bank holding company and each subsidiary of a covered bank holding company shall have in place a policy that cancels any compensation deferred under subsection 7b7 that cannot be repaid as described under subsection 7b77#c71 due to the deferment fund lacking sufficient funds4 7e7 ,treatment of deferred compensation of ex-,employees ,with respect to an individual that has compensation deferred pursuant to subsection 7b71 but is no longer employed by the applicable bank holding company or subsidiary1 if the bank holding company or subsidiary is required to pay a fine from its deferment fund for misconduct that occurred after the individual was no longer employed by the bank holding company or subsidiary1 the bank holding company or subsidiary shall segregate the individual's deferred compensation from other amounts in the deferment fund and shall not use such segregated amounts for any purpose other than repaying the individual pursuant to subsection 7b77#c7 or for the payment of another fine for misconduct that occurred while the individual was still employed by the bank holding company or subsidiary4 7f7 ,rulemaking ,the ,board may issue such rules as the ,board determines necessary to carry out this section4 7g7 ,definitions ,in this section3 7#a7 ,compensation ,with respect to an employee1 the term compensation means any financial remuneration1 including salary1 bonuses1 incentives1 benefits1 severance1 deferred compensation1 or golden parachute benefits1 and any profits that would be realized from the sale of the securities of the company employing the employee4 7#b7 ,consolidated bank holding company ,with respect to a bank holding company1 the term consolidated bank holding company means the bank holding company and all subsidiaries of the bank holding company4 7#c7 ,covered bank holding company ,the term covered bank holding company means a consolidated bank holding company with more than #bej1jjj1jjj1jjj in consolidated assets4 7#d7 ,senior employee ,the term senior employee means an employee of a covered bank holding company or a subsidiary of the covered bank holding company who-- 7,a7 has total compensation of more than #a1jjj1jjj2 7,b7 is identified by the bank holding company as one of the #ajj most senior officers of the consolidated bank holding company2 7,c7 receives one of the #ajj largest compensation packages of the consolidated bank holding company2 7,d7 receives compensation that is more than #aj times the compensation of the median paid employee of the consolidated bank holding company2 or 7,e7 has the authority to commit or expose #j4e percent or more of the capital of the consolidated bank holding company4 4