Stopping Bonuses for Unsafe and Unsound Banking Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 6705 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 6705 To prohibit a large banking institution from paying discretionary bonus payments when the institution is subject to a Matter Requiring Immediate Attention and does not provide the appropriate Federal banking agency with a remediation plan to correct the matter, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES December 15, 2025 Ms. Pettersen introduced the following bill; which was referred to the Committee on Financial Services _______________________________________________________________________ A BILL To prohibit a large banking institution from paying discretionary bonus payments when the institution is subject to a Matter Requiring Immediate Attention and does not provide the appropriate Federal banking agency with a remediation plan to correct the matter, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Stopping Bonuses for Unsafe and Unsound Banking Act''. SEC. 2. FREEZE ON DISCRETIONARY BONUS PAYMENTS BY LARGE BANKING INSTITUTIONS IN CERTAIN CIRCUMSTANCES. (a) In General.--If the appropriate Federal banking agency issues a ``matter requiring immediate attention'' (or similar supervisory notice) to a covered banking institution, the institution may not make any discretionary bonus payment to a senior executive officer until the matter is resolved to the satisfaction of the appropriate Federal banking agency. (b) Remediation Plan Exception.--Subsection (a) shall not apply to a covered banking institution receiving a ``matter requiring immediate attention'' (or similar supervisory notice)-- (1) during the period beginning on the date the covered banking institution receives the ``mat