,,ii ,cal5d> ,no4 #aae #aah? ,,congress 
#a/ ,session  ,s4 #baij  ,,9 ,,! ,,s5ate
 ,,( ,,! ,,unit$ ,,/ates  ,june #bb1    
#bjbc,mr4 ,br[n f ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs1       
report$ ! foll[+ orig9al bill2 :i* 0    
read twice & plac$ on ! cal5d>  ,a      
,,bill  ,to am5d ! ,f$]al ,deposit      
,insurance ,act to increase bank        
executive acc\ntability & to improve    
f9ancial /ability1 & = o!r purposes4    
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,recov]+ ,executive ,comp5sation      
,obta9$ f ,unacc\ntable ,practices ,act 
( #bjbc or ! ,,rec\p ,act ( #bjbc4  #b4 
,removal & prohibition au?orities       
,section #h7;e7 ( ! ,f$]al ,deposit     
,insurance ,act 7#ab ,u4,s4,c4          
#ahah7;e77 is am5d$-- 7#a7 9 p>agraph   
7#a7-- 7,a7 9 subp>agraph 7,a7-- 7i7 9  
clause 7ii71 by /rik+ or at ! end2  7ii7
 9 clause 7iii71 by ins]t+ or at ! end2 
&  7iii7 by add+ at ! end ! foll[+3     
7iv7 9 ! case ( a s5ior executive1 z    
def9$ 9 p>agraph 7#b77;,c71 fail$ to    

c>ry out ! responsibilities ( ! s5ior   
executive = gov]nance1 op]ations1 or    
risk or f9ancial managem5t ( an insur$  
depository in/itution or bus9ess        
in/itution2  2  7,b7 9 subp>agraph 7,b71
 9 ! matt] prec$+ clause 7i71 by ins]t+ 
failure1 aft] practice12 &  7,c7 9      
subp>agraph 7,c7-- 7i7 9 ! matt] prec$+ 
clause 7i71 by ins]t+ failure1 aft]     
practice12 &  7ii7 by /rik+ clause 7ii7 
& ins]t+ ! foll[+3  7ii7 demon/rates--  
7,i7 willful or cont9u+ disreg>d by su* 
p>ty = ! safety or s\ndness ( su* insur$
 depository in/itution or bus9ess       
in/itution2 or  7,,ii7 9 ! case ( a     
s5ior executive1 z def9$ 9 p>agraph     
7#b77;,c71 gross neglig5ce by su* s5ior 
executive 9 ! p]=mance ( ! duties ( !   
s5ior executive to ! insur$ depository  
in/itution or bus9ess in/itution1  2 &  
7#b7 9 p>agraph 7#b7-- 7,a7 9           
subp>agraph 7,a7-- 7i7 9 clause 7iii71  
by /rik+ or at ! end2  7ii7 by          
r$esignat+ clause 7iv7 z clause 7v72 &  
7iii7 by ins]t+ aft] clause 7iii7 !     

foll[+3  7iv7 a s5ior executive ( an    
insur$ depository in/itution has-- 7,i7 
brea*$ any fiduci>y duty ow$ to !       
in/itution1 if ! brea* is det]m9$ to    
require grossly neglig5t1 reckless1 or  
willful conduct2  7,,ii7 fail$ to       
appropriately implem5t f9ancial1 risk1  
or sup]visory report+ or in=mation sy/em
 or controls2 or  7,,iii7 hav+ implem5t$
 a sy/em or controls describ$ 9         
subclause 7,,ii71 has fail$ to ov]see   
its op]ations2 or  2 &  7,b7 by add+ at 
! end ! foll[+3  7,c7 ,def9ition ,9 ?is 
p>agraph1 ! t]m s5ior executive means an
 individual :o has ov]sight au?ority =  
manag+ ! ov]all gov]nance1 op]ations1   
risk1 or f9ances ( a depository         
in/itution or depository in/itution     
hold+ company1 includ+ ! presid5t1 !    
*ief executive (fic]1 ! *ief op]at+     
(fic]1 ! *ief f9ancial (fic]1 ! *ief    
risk (fic]1 ! *ief legal (fic]1 !       
*airman ( ! bo>d1 an inside director ( !
 bo>d ( directors1 & an individual :o   
occupies an equival5t position1 z       

det]m9$ by ! depository in/itution or   
depository in/itution hold+ company1 z  
applicable4  4  #c4 ,gov]nance &        
acc\ntability /&>ds ,! ,f$]al ,deposit  
,insurance ,act 7#ab ,u4,s4,c4 #ahaa et 
seq47 is am5d$ by add+ at ! end !       
foll[+3  #ed4 ,gov]nance & acc\ntability
 /&>ds  7a7 ,def9ition ,9 ?is section1 !
 t]m s5ior executive has ! mean+ giv5 ! 
t]m 9 section #h7;e77#b77;,c74  7b7     
,adoption ( /&>ds ,except z provid$ 9   
subsection 7d71 ea* depository          
in/itution & depository in/itution hold+
 company %all adopt gov]nance &         
acc\ntability /&>ds 9 ! bylaws 7or _!   
equival5ts7 ( ! depository in/itution or
 depository in/itution hold+ company1 z 
applicable1 t promote safety & s\ndness1
 responsiv5ess to sup]visory matt]s1 &  
responsible managem5t4  7c7 ,requir$    
cont5ts  7#a7 ,9 g5]al ,! /&>ds adopt$  
"u subsection 7b7 %all include-- 7,a7   
policies = s5ior executives & memb]s ( !
 bo>d ( directors ( ! depository        
in/itution or depository in/itution     

hold+ company relat+ to appropriate risk
 managem5t & responsiv5ess to sup]visory
 matt]s1 includ+ respond+ to !          
appropriate ,f$]al bank+ ag5cy & ,/ate  
bank+ sup]visor1 z applicable1 on       
sup]visory matt]s on a timely basis2    
7,b7 acc\ntability & corporate gov]nance
 me*anisms & controls su* z-- 7i7       
direct+ su* s5ior executives & bo>d (   
directors to implem5t report+ or        
in=mation sy/em or controls & ov]see su*
 sy/ems appropriately & prud5tly2  7ii7 
direct+ t managem5t does n deviate f    
s\nd gov]nance1 int]nal control1 or risk
 managem5t2 &  7iii7 direct+ t          
appropriate long-t]m risk managem5t be  
tailor$ to long-t]m economic conditions2
 &  7,c7 except z provid$ 9 p>agraph    
7#b7 & subsection 7d71 9 ! ev5t ( !     
failure ( ! depository in/itution or    
depository in/itution hold+ company1 z  
applicable1 clawback au?ority t p]mits !
 bo>d ( directors ( ! depository        
in/itution or depository in/itution     
hold+ company 7or ! equival5t71 or1 if !

 ,corporation has be5 appo9t$ receiv] or
 cons]vator ( ! depository in/itution1 !
 ,corporation1 9 its capacity z receiv] 
or cons]vator1 to recov] f a s5ior      
executive ( ! depository in/itution or  
depository in/itution hold+ company :o  
is responsible = ! fail$ condition ( !  
depository in/itution or depository     
in/itution hold+ company-- 7i7 any      
bonus1 o!r inc5tive-bas$ or equity-bas$ 
comp5sation1 sev]ance pay1 or gold5     
p>a*ute b5efits receiv$ by t s5ior      
executive f ! depository in/itution or  
depository in/itution hold+ company dur+
 ! #bd-mon? p]iod prec$+ ! failure ( !  
depository in/itution or depository     
in/itution hold+ company2 &  7ii7 any   
pr(its realiz$ by t s5ior executive f ! 
sale ( securities ( ! entity dur+ !     
#bd-mon? p]iod describ$ 9 clause 7i74   
7#b7 ,exception ,p>agraph 7#a77;,c7 %all
 n apply to any s5ior executive-- 7,a7  
:o has be5 employ$ by ! depository      
in/itution or depository in/itution     
hold+ company = n m ?an #ah mon?s be=e !

 date ( ! failure ( ! depository        
in/itution or depository in/itution     
hold+ company2 &  7,b7 ^: conduct did n 
contribute to ! failure ( ! depository  
in/itution or depository in/itution     
hold+ company1 z applicable4  7d7       
,exception ,?is section %all n apply to 
a depository in/itution or depository   
in/itution hold+ company ) total        
consolidat$ assets ( n m ?an            
#aj1jjj1jjj1jjj4  4  #d4 ,cease-&-desi/ 
proce$+s ,section #h7;b7 ( ! ,f$]al     
,deposit ,insurance ,act 7#ab ,u4,s4,c4 
#ahah7;b77 is am5d$ by ins]t+ aft]      
p>agraph 7#h7 ! foll[+3  7#i7 ,recov]y (
 comp5sation ,if ! ,corporation is      
appo9t$ receiv] or cons]vator ( an      
insur$ depository in/itution ) total    
consolidat$ assets ( m ?an              
#aj1jjj1jjj1jjj1 ! ,corporation may     
recov] = ! receiv]%ip or cons]vator%ip  
inc5tive-bas$ comp5sation1 equity-bas$  
comp5sation1 sev]ance pay1 gold5 p>a*ute
 b5efits1 or comp5sation t is grant$ or 
ve/$ bas$ :olly or 9 "p ^u ! atta9m5t ( 

any f9ancial report+ measure or o!r     
p]=mance metric1 & any pr(its realiz$ f 
! pur*ase or sale ( securities ( !      
depository in/itution or depository     
in/itution hold+ company dur+ ! #bd-mon?
 p]iod prec$+ ! failure ( ! insur$      
depository in/itution f any s5ior       
executive1 z def9$ 9 subsection         
7e77#b77;,c71 :o is responsible = !     
fail$ condition ( ! depository          
in/itution or depository in/itution     
hold+ company4  4  #e4 ,civil money     
p5alties ,section #h7;i77#b7 ( ! ,f$]al 
,deposit ,insurance ,act 7#ab ,u4,s4,c4 
#ahah7;i77#b77 is am5d$-- 7#a7 9        
subp>agraph 7,c77i71 9 ! matt] prec$+   
subclause 7,i71 by ins]t+ or1 9 ! case (
 a s5ior executive1 z def9$ 9 subsection
 7e77#b77;,c71 recklessly aft] kn[+ly2 &
  7#b7 9 subp>agraph 7,d77i71 by /rik+  
#a1jjj1jjj & ins]t+ #c1jjj1jjj4  #f4    
,fail$ bank m]g]s & acquisitions  7a7   
,fail$ bank m]g]s ,section              
#ah7;c77#ac77;,b7 ( ! ,f$]al ,deposit   
,insurance ,act 7#ab ,u4,s4,c4          

#ahbh7;c77#ac77;,b77 is am5d$ by /rik+  
section #ac4 & ins]t+ 8section #ac1 if--
  7i7 at ! "t ! responsible ag5cy       
proposes to approve ! application1 !re  
is no application or propos$ application
 7o!r ?an an application t also w\ld be 
subject to ! prohibition 9 subp>agraph  
7,a77 to acquire ! #a or m insur$       
depository in/itutions 9 default or 9   
dang] ( default p5d+ be=e any           
appropriate ,f$]al bank+ ag5cy t w\ld1  
accord+ to ! responsible ag5cy = su*    
application1 meet all applicable /&>ds =
 approval by ! responsible ag5cy2  7ii7 
! ,corporation w\ld provide assi/ance "u
 section #ac ) respect to ! int]/ate    
m]g] transaction2 &  7iii7 !            
,corporation has det]m9$ t ! int]/ate   
m]g] transaction t is ! subject ( !     
application to ! responsible ag5cy is ! 
only propos$ transaction to acquire1    
directly or indirectly1 ! #a or m insur$
 depository in/itutions 9 default or 9  
dang] ( default p5d+ be=e ! ,corporation
 7o!r ?an an int]/ate m]g] transaction t

 also w\ld be subject to ! prohibition 9
 subp>agraph 7,a77 t w\ld p]mit !       
,corporation to-- 7,i7 comply ) !       
lea/-co/ resolution requirem5ts set =? 9
 section #ac7;c77#d72 or  7,,ii7 avoid !
 s]i\s adv]se effects on economic       
conditions or f9ancial /ability t w\ld  
occur abs5t ex]cise ( ! au?ority 9      
section #ac7;c77#d77;,g71 if a sy/emic  
risk det]m9ation has be5 made "u su*    
section ) respect to ! insur$ depository
 in/itution or in/itutions t are !      
subject ( ! application4  4  7b7 ,fail$ 
bank acquisitions ,section #c7;d77#e7 ( 
! ,bank ,hold+ ,company ,act ( #aief    
7#ab ,u4,s4,c4 #ahdb7;d77#e77 is am5d$--
 7#a7 by r$esignat+ subp>agraphs 7,a7 & 
7,b7 z clauses 7i7 & 7ii71 respectively1
 & adju/+ ! m>g9s accord+ly2  7#b7 9 !  
matt] prec$+ clause 7i71 z s r$esignat$1
 by /rik+ ,! ,bo>d may approve & ins]t+ 
! foll[+3  7,a7 ,except z provid$ 9     
subp>agraph 7,b71 ! ,bo>d may approve  2
 &  7#c7 by ins]t+ at ! end ! foll[+3   
7,b7 ,not)/&+ subp>agraph 7,a71 ! ,bo>d 

may approve an application t w\ld       
o!rwise be subject to ! prohibition 9   
subp>agraph 7,a7 or 7,b7 ( p>agraph 7#b7
 if-- 7i7 at ! "t ! ,bo>d proposes to   
approve ! application1 !re is no        
application or propos$ application 7o!r 
?an an application t also w\ld be       
subject to ! prohibitions 9 subp>agraph 
7,a7 or 7,b7 ( p>agraph 7#b77 to        
acquire1 directly or indirectly1 ! #a or
 m banks 9 default or 9 dang] ( default1
 or ! acquisition ) respect to :i*      
assi/ance is provid$ "u section #ac7;c7 
( ! ,f$]al ,deposit ,insurance ,act 7#ab
 ,u4,s4,c4 #ahbc7;c771 p5d+ be=e ! ,bo>d
 t w\ld meet all applicable /&>ds =     
approval "u ?is section2  7ii7 ! ,f$]al 
,deposit ,insurance ,corporation w\ld   
provide assi/ance "u section #ac ( !    
,f$]al ,deposit ,insurance ,act 7#ab    
,u4,s4,c4 #ahbc7 ) respect to !         
acquisition t is ! subject ( !          
application to ! ,bo>d2 &  7iii7 !      
,f$]al ,deposit ,insurance ,corporation 
has det]m9$ t ! acquisition is ! only   

propos$ transaction to acquire1 directly
 or indirectly1 ! #a or m banks 9       
default or 9 dang] ( default p5d+ be=e !
 ,corporation 7o!r ?an an acquisition t 
also w\ld be subject to ! prohibition 9 
subp>agraph 7,a7 or 7,b7 ( p>agraph     
7#b77 t w\ld p]mit ! ,corporation to--  
7,i7 comply ) ! lea/-co/ resolution     
requirem5ts set =? 9 section #ac7;c77#d7
 ( ! ,f$]al ,deposit ,insurance ,act    
7#ab ,u4,s4,c4 #ahbc7;c77#d772 or       
7,,ii7 avoid ! s]i\s adv]se effects on  
economic conditions or f9ancial /ability
 t w\ld occur abs5t ex]cise ( ! au?ority
 9 section #ac7;c77#d77;,g7 ( ! ,f$]al  
,deposit ,insurance ,act 7#ab ,u4,s4,c4 
#ahbc7;c77#d77;,g771 if a sy/emic risk  
det]m9ation has be5 made "u su* section 
) respect to ! bank or banks t are !    
subject ( ! application4  4  #g4        
,transp>5cy relat+ to fail$ in/itutions 
7a7 ,def9itions ,9 ?is section3 7#a7    
,appropriate f$]al bank+ ag5cy2         
depository in/itution ,! t]ms           
appropriate ,f$]al bank+ ag5cy &        

depository in/itution h ! mean+s giv5 ! 
t]ms 9 section #c ( ! ,f$]al ,deposit   
,insurance ,act 7#ab ,u4,s4,c4 #ahac74  
7#b7 ,cov]$ in/itution ,! t]m cov]$     
in/itution means a depository in/itution
 ) m ?an #aj1jjj1jjj1jjj 9 total        
consolidat$ assets4  7b7 ,sup]vision    
review & public report ,n lat] ?an #ahj 
days 7or dur+ a p]iod ( f9ancial /ress1 
a reasonable "t7 aft] ! failure ( a     
cov]$ in/itution1 ea* appropriate ,f$]al
 bank+ ag5cy %all complete a review ( ! 
managem5t1 sup]vision1 & regulation ( t 
in/itution & make publicly available a  
report detail+ ! f9d+s ( ! ag5cy4  #h4  
,f$]al ,res]ve sup]vision & regulation  
report ,n less frequ5tly ?an            
semiannually1 ! ,bo>d ( ,gov]nors ( !   
,f$]al ,res]ve ,sy/em %all make publicly
 available a report on-- 7#a7 !         
sup]visory & regulatory policies &      
actions ( ! ,bo>d2  7#b7 ! curr5t bank+ 
conditions2 &  7#c7 any int]nal *anges !
 ,bo>d is mak+ to ! op]ations & culture 
( ! ,bo>d ) respect to ! sup]visory &   

regulatory actions describ$ 9 p>agraph  
7#a71 includ+ ! frameworks1 /rategies1 &
 metrics t ! ,bo>d is us+ to-- 7,a7     
improve int]nal communication )9 !      
,f$]al ,res]ve ,sy/em & ) ,f$]al bank+  
ag5cies & ,/ate bank+ sup]visors2  7,b7 
enhance ! process by :i* ! ,bo>d        
solicits & receives public input2 &     
7,c7 ensure timely1 appropriate1 &      
effective actions & communications are  
tak5 9 response to sup]visory conc]ns2  
7#d7 ! budgets1 /aff+1 & any use (      
outside s]vices to accompli% ! items    
describ$ 9 p>agraph 7#c72 &  7#e7 !     
progress made = ea* ( ! metrics = ea* ( 
! items describ$ 9 p>agraph 7#c74  #i4  
,reports & te/imony  7a7 ,9 g5]al ,n    
lat] ?an #ahj days 7or dur+ a p]iod (   
f9ancial /ress1 a reasonable "t7 aft] ! 
appo9tm5t ( ! ,f$]al ,deposit ,insurance
 ,corporation z receiv] or cons]vator ( 
an insur$ depository in/itution ) m ?an 
#aj1jjj1jjj1jjj 9 total consolidat$     
assets1 z ^? t]ms are def9$ 9 section #c
 ( ! ,f$]al ,deposit ,insurance ,act    

7#ab ,u4,s4,c4 #ahac71 ! inspector g5]al
 ( ! prim>y ,f$]al regulator ( ! insur$ 
depository in/itution or depository     
in/itution hold+ company1 includ+ !     
,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve    
,sy/em1 %all submit to ! ,committee on  
,bank+1 ,h\s+1 & ,urban ,affairs ( !    
,s5ate & ! ,committee on ,f9ancial      
,s]vices ( ! ,h\se ( ,repres5tatives a  
report t includes-- 7#a7 an evaluation (
 ! effectiv5ess ( ! prim>y ,f$]al       
regulator 9 c>ry+ out its sup]visory    
responsibilities ) respect to ! insur$  
depository in/itution or depository     
in/itution hold+ company2  7#b7 an      
id5tification ( any acts or omissions on
 ! "p ( (ficials ( ! prim>y ,f$]al      
regulator t contribut$ to ! failure ( ! 
insur$ depository in/itution or         
depository in/itution hold+ company2    
7#c7 an id5tification ( any actions t   
c\ld h be5 tak5 by ! prim>y ,f$]al      
regulator t w\ld h prev5t$ ! failure ( !
 insur$ depository in/itution or        
depository in/itution hold+ company2 &  

7#d7 an id5tification ( ! causes ( !    
failure ( ! insur$ depository in/itution
 or depository in/itution hold+ company1
 includ+ actions or omissions by bo? !  
prim>y ,f$]al regulator & managem5t ( ! 
insur$ depository in/itution or         
depository in/itution hold+ company4    
7b7 ,te/imony ,n lat] ?an #cj days aft] 
! date on :i* ! report requir$ "u       
subsection 7a7 is receiv$1 ! inspector  
g5]al ( ! prim>y ,f$]al regulator %all  
be available to te/ify be=e ! committees
 describ$ 9 subsection 7a74  #aj4 ,s5se 
( ,congress ,x is ! ,s5se ( ,congress   
t-- 7#a7 ! f9ancial sy/em ( ! ,unit$    
,/ates is /rong & resili5t1 & ! va/     
majority ( ! f9ancial in/itutions 9 !   
,unit$ ,/ates are well manag$2  7#b7 9  
ord] to ensure ! f9ancial sy/em ( !     
,unit$ ,/ates rema9s /rong & resili5t1  
mismanagem5t by s5ior executives mu/ be 
det]r$2  7#c7 f9ancial regulators %\ld  
op]ate 9 an appropriate & transp>5t     
mann]2 &  7#d7 ?is ,act & ! am5dm5ts    
made by ?is ,act %\ld n be us$ to       

p5alize s5ior executives ( heal?y       
f9ancial in/itutions t are appropriately
 manag$4  #aa4 ,rule ( con/ruction      
,except z o!rwise specifically provid$  
h]e91 no?+ 9 ?is ,act1 or ! am5dm5ts    
made by ?is ,act1 may be con/ru$ to am5d
 or alt] ! au?ority ( ! ,f$]al ,deposit 
,insurance ,corporation or any o!r      
appropriate ,f$]al bank+ ag5cy1 z def9$ 
9 section #c ( ! ,f$]al ,deposit        
,insurance ,act 7#ab ,u4,s4,c4 #ahac74  
,june #bb1 #bjbc,read twice & plac$ on !
 cal5d>