To prohibit stock sales by senior bank executives in certain circumstances.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 7887 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 7887 To prohibit stock sales by senior bank executives in certain circumstances. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES March 9, 2026 Ms. Waters introduced the following bill; which was referred to the Committee on Financial Services _______________________________________________________________________ A BILL To prohibit stock sales by senior bank executives in certain circumstances. 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 ``Incentivizing Safe and Sound Banking Act''. SEC. 2. STOCK SALE PROHIBITION. (a) Authority To Prohibit Stock Sales Relating to Cease and Desist Orders.--Section 8(b) of the Federal Deposit Insurance Act (12 U.S.C. 1818(b)) is amended by inserting at the end the following: ``(11) Stock sale prohibition.--The authority to issue an order under this subsection or subsection (c) includes the authority to prohibit the sale of securities of the insured depository institution and any affiliate of such insured depository institution received and owned by any current or former officer or director of the insured depository institution or any institution-affiliated party that received such securities as a form of compensation.''. (b) Automatic Prohibition.--Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended by adding at the end the following: ``(x) Automatic Prohibition of Stock Sale.-- ``(1) In general.--If a covered banking institution has a composite or component rating of 3, 4, or 5 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system), or the appropriate Federal banking agency issues a `matter requiring immediate attention' (or