DEPOSIT Act

HR 1654, the DEPOSIT Act, imposes a new tax on certain bank executives' bonuses and stock profits when their bank fails and the FDIC becomes conservator or receiver. It specifically targets executives who earned over $250,000 (adjusted for excluded profits) in the year before their bank's failure and received bonuses within 60 days prior to the FDIC takeover or sold bank stock within that same period. The tax adds 90% of bonus profits and 100% of stock profit amounts to the executive's regular income tax. All revenue generated from this tax will be directed to the Deposit Insurance Fund, which protects bank deposits.