Promoting Financial Stability

Floor Speech

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Ms. TLAIB. Mr. Speaker, after the 2008 financial crisis, Congress tasked our financial regulators with implementing a rule that bans compensation packages for bank executives that incentivize inappropriate risk-taking.

But more than a decade later, a decade and a half later, we are still waiting for this rule to be finalized.

As the 2023 banking failure demonstrates--we just had one in 2023-- improper incentives continue to pose a threat to our financial system.

That is why I am proud to be able to introduce the Fostering Accountability in Remuneration Fund Act. It requires large financial institutions to set aside a portion of executive compensation to be paid out, absent misconduct or firm failure, after a period of between 2 to 8 years depending on the size of the institution.

In the case of misconduct or failure, deferred funds would be used to be cover the costs of any fines levied on the bank and to make depositors whole. This is important because the American people are tired of bailing out folks who commit fraud and misconduct.

I urge my colleagues to promote financial stability for our residents and support this bill.

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