,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #chhe  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #bc1 #bjai,ms4  
,gabb>d introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,f9ancial     
,s]vices  ,a ,,bill  ,to am5d ! ,bank   
,hold+ ,company ,act ( #aief to def] "p 
( ! comp5sation ( s5ior employees ( l>ge
 bank hold+ companies 7& _! subsidi>ies7
 = #aj ye>s1 to use su* def]r$ am\nts to
 pay any civil or crim9al f9es t may be 
levi$ on ! bank hold+ company 7or       
subsidi>y71 & = o!r purposes4  #a4 ,%ort
 title ,?is ,act may be cit$ z ! ,wall  
,/reet ,bank] ,acc\ntability =          
,misconduct ,act ( #bjai4  #b4 ,f9d+s ,!
 ,congress f9ds ! foll[+3  7#a7 ,s5ior  
employees ( major bank hold+ companies  
receive extraord9>y pay packages1 ev5 :5
 !y ov]see massive frauds & f9ancial    
misconduct4  7#b7 ,widespread f9ancial  
misconduct by individual ,wall ,/reet   
bank]s l$ to ! #bjjh f9ancial crisis1   
:i* caus$ ! ,great ,recession4 ,!       
,dep>tm5t ( ,ju/ice br\ght litigation   

aga9/ e major bank1 result+ 9 m ?an     
#afc1jjj1jjj1jjj 9 f9es4  7#c7 ,?is     
misconduct result$ f ! actions (        
individuals & 0 a direct result ( a     
bank+ culture t rew>ds bad behavior4    
7#d7 ,despite ! actions ( individuals1  
,wall ,/reet banks paid billions (      
doll>s 9 f9es out ( monies t o!rwise 7  
own$ & c\ld be paid 9 divid5ds to       
%>ehold]s4 ,:ile culpable bank]s cont9u$
 to receive extraord9>y pay1 innoc5t    
%>ehold]s paid ! price = bank]          
misconduct4  7#e7 ,9 ! aft]ma? ( !      
,great ,recession1 & aft] fur!r         
misconduct 9 ! f9ancial s]vices indu/ry1
 ! ,f$]al ,res]ve ,bank ( ,new ,york has
 urg$ f9ancial firms to reevaluate &    
re=m _! comp5sation inc5tive /ructures  
to align ) %>ehold]s & cu/om]s int]e/s4 
7#f7 ,misalign$ inc5tives )9 ! bank+    
indu/ry cont9ue to fail to hold ,wall   
,/reet executives & _! s5ior employees  
acc\ntable = _! actions4  #c4 ,def]m5t (
 s5ior employee comp5sation ,! ,bank    
,hold+ ,company ,act ( #aief 7#ab       

,u4,s4,c4 #ahda et seq47 is am5d$ by    
ins]t+ aft] section #e ! foll[+3  #f4   
,def]m5t ( s5ior employee comp5sation   
7a7 ,def]m5t fund ,ea* cov]$ bank hold+ 
company & ea* subsidi>y ( a cov]$ bank  
hold+ company %all e/abli% a def]m5t    
fund1 :i* %all--  7#a7 only conta9      
comp5sation def]r$ "u subsection 7b72 & 
7#b7 only be us$ z p]mitt$ by ?is       
section4  7b7 ,def]m5t ( comp5sation    
,ea* cov]$ bank hold+ company & ea*     
subsidi>y ( a cov]$ bank hold+ company  
%all-- 7#a7 ea* ye>1 def] ! comp5sation 
( ea* s5ior employee ( ! bank hold+     
company or subsidi>y 9 an am\nt equal to
 at lea/ #ej p]c5t ( ! am\nt t !        
employee's total comp5sation = ! ye>    
exce$s #aj times ! comp5sation ( ! m$ian
 paid employee ( ! consolidat$ bank     
hold+ company = ! ye>2  7#b7 place all  
comp5sation def]r$ "u p>agraph 7#a7 into
 ! def]m5t fund ( ! bank hold+ company  
or subsidi>y2 &  7#c7 aft] ! end ( !    
#aj-ye> p]iod beg9n+ on ! date !        
comp5sation 0 def]r$1 if suffici5t funds

 rema9 9 ! def]m5t fund1 pay ! s5ior    
employee ! am\nt ( comp5sation def]r$ at
 ! beg9n+ ( ! #aj-ye> p]iod4  7c7 ,use (
 def]m5t fund ,to pay f9es ,if a cov]$  
bank hold+ company or subsidi>y ( a     
cov]$ bank hold+ company is subject to a
 civil or crim9al f9e1 ! bank hold+     
company or subsidi>y %all fir/ pay su*  
f9e out ( am\nts conta9$ 9 ! def]m5t    
fund ( ! bank hold+ company or          
subsidi>y4  7d7 ,cancellation (         
comp5sation t _c be paid f def]m5t fund 
,ea* cov]$ bank hold+ company & ea*     
subsidi>y ( a cov]$ bank hold+ company  
%all h 9 place a policy t cancels any   
comp5sation def]r$ "u subsection 7b7 t  
_c be repaid z describ$ "u subsection   
7b77#c71 due to ! def]m5t fund lack+    
suffici5t funds4  7e7 ,treatm5t ( def]r$
 comp5sation ( ex-,employees ,) respect 
to an individual t has comp5sation      
def]r$ pursuant to subsection 7b71 b is 
no long] employ$ by ! applicable bank   
hold+ company or subsidi>y1 if ! bank   
hold+ company or subsidi>y is requir$ to

 pay a f9e f its def]m5t fund =         
misconduct t occurr$ aft] ! individual 0
 no long] employ$ by ! bank hold+       
company or subsidi>y1 ! bank hold+      
company or subsidi>y %all segregate !   
individual's def]r$ comp5sation f o!r   
am\nts 9 ! def]m5t fund & %all n use su*
 segregat$ am\nts = any purpose o!r ?an 
repay+ ! individual pursuant to         
subsection 7b77#c7 or = ! paym5t ( ano!r
 f9e = misconduct t occurr$ :ile !      
individual 0 /ill employ$ by ! bank     
hold+ company or subsidi>y4  7f7        
,rulemak+ ,! ,bo>d may issue su* rules z
 ! ,bo>d det]m9es necess>y to c>ry out  
?is section4  7g7 ,def9itions ,9 ?is    
section3  7#a7 ,comp5sation ,) respect  
to an employee1 ! t]m comp5sation means 
any f9ancial remun]ation1 includ+ sal>y1
 bonuses1 inc5tives1 b5efits1 sev]ance1 
def]r$ comp5sation1 or gold5 p>a*ute    
b5efits1 & any pr(its t w\ld be realiz$ 
f ! sale ( ! securities ( ! company     
employ+ ! employee4  7#b7 ,consolidat$  
bank hold+ company ,) respect to a bank 

hold+ company1 ! t]m consolidat$ bank   
hold+ company means ! bank hold+ company
 & all subsidi>ies ( ! bank hold+       
company4  7#c7 ,cov]$ bank hold+ company
 ,! t]m cov]$ bank hold+ company means a
 consolidat$ bank hold+ company ) m ?an 
#bej1jjj1jjj1jjj 9 consolidat$ assets4  
7#d7 ,s5ior employee ,! t]m s5ior       
employee means an employee ( a cov]$    
bank hold+ company or a subsidi>y ( !   
cov]$ bank hold+ company :o--  7,a7 has 
total comp5sation ( m ?an #a1jjj1jjj2   
7,b7 is id5tifi$ by ! bank hold+ company
 z "o ( ! #ajj mo/ s5ior (fic]s ( !     
consolidat$ bank hold+ company2  7,c7   
receives "o ( ! #ajj l>ge/ comp5sation  
packages ( ! consolidat$ bank hold+     
company2  7,d7 receives comp5sation t is
 m ?an #aj times ! comp5sation ( ! m$ian
 paid employee ( ! consolidat$ bank     
hold+ company2 or  7,e7 has ! au?ority  
to commit or expose #j4e p]c5t or m ( ! 
capital ( ! consolidat$ bank hold+      
company4  4