Sec. 2. Claw back
188 words·~1 min read·
/bill/118/hr/2972/ih/section-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 8(b) of the Federal Deposit Insurance Act ( 12 U.S.C. 1818(b) ) is amended by inserting after paragraph
(8)the following: In this paragraph, the term covered compensation means— salary; bonuses; any compensation that is granted, earned, or vested based wholly or in part upon the attainment of any financial reporting measure or other performance metric; equity-based compensation; time- or service-based awards; awards based on nonfinancial metrics; and any profits realized from the buying or selling of securities. An institution-affiliated party that is substantially responsible for the condition of the insured depository institution is liable to the Corporation for any covered compensation clawed back under clause (ii). In the case of insolvency or resolution of any insured depository institution, the Corporation shall claw back all or part of the covered compensation received by an institution-affiliated party during the preceding 5 years as is necessary to prevent unjust enrichment and assure that the party bears losses consistent with the responsibility of the party. Any covered compensation clawed back under this subparagraph shall be deposited into the Deposit Insurance Fund or into the general fund of the Treasury. .
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