Bank Failure Accountability Act
To defer part of the compensation of senior employees of large financial institutions (and their subsidiaries), to use such deferred amounts to pay any civil or criminal fines that may be levied on the institution (or subsidiary), and for other purposes.
HB9490 proposes to require senior employees of large financial institutions and their subsidiaries to defer a portion of their compensation. This deferred compensation would then be used to pay any civil or criminal fines imposed on the institution or its subsidiary. This bill aims to ensure that financial institutions are held accountable for their actions by making sure they have the resources available to pay fines.
The bill primarily affects senior employees at large financial institutions and their subsidiaries. By deferring part of their compensation, these employees would contribute directly to fines imposed on their employers, thereby linking their personal financial decisions to the institution's legal compliance.
HB9490 was introduced on June 25, 2026, and has been referred to the House Committee on Financial Services. This initial step signifies that the bill is now under review by the relevant committee, which will examine its provisions and potential impacts before deciding on further action.
