Sending Office: Honorable Tulsi Gabbard
Endorsing Organizations: Public Citizen; Institute for Policy Studies, Global Economy Project; AFL-CIO; International Brotherhood of Teamsters
I invite you to join me as a cosponsor of H.R.3885, the Wall Street Banker Accountability for Misconduct Act. This bill would require senior executives at major banks to defer a portion of their annual pay into a deferment fund. If a covered bank is subject
to criminal or civil fines, this pool is used to pay the fine instead of using shareholder funds.
As reported in the
Wall Street Journal last week, the Office of the Comptroller for the Currency outlined regulatory warnings against Wells Fargo for failing to implement strong enough executive compensation policies to discourage wrongdoing, which plagued the company and
resulted in a massive scandal that saw the unauthorized creation of millions of fake accounts in customers names without their knowledge.
With your support, this bill will create incentives for Wall Street executives to proactively prevent wrongdoing, which would better protect customers and taxpayers from being left on the hook to pay for a bank’s failures.
The Wall Street Banker Accountability for Misconduct Act of 2019 will:
- Require covered banks (bank holding companies and their subsidiaries with more than $250 billion in assets) to establish a deferment fund.
- Senior executives who receive compensation that is more than ten times the compensation of the median paid employee of the covered bank, have a total compensation of more than $1 million, receive one of the 100 largest compensation packages, and with authority
to expose more than 0.5% of covered bank’s capital will be required to defer a portion of their pay each year into the deferment fund.
- If a covered bank is subject to criminal or civil fines, the deferment fund must be used to pay for such penalties.
- If enough funds remain, the covered bank will pay back senior executives’ compensation ten years after the date the compensation amount was deferred. The bill prohibits a covered bank from using deferred funds of an ex-employee for wrongdoing that occurred
after the ex-employee’s departure from the covered bank.
- Require each bank holding company to establish a policy that cancels any deferred compensation that cannot be repaid due to insufficient funding from the deferment fund.
To join, please contact Andres Chovil in my office at
firstname.lastname@example.org or 202-225-4906.
Member of Congress
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