RECOUP Act of 2023

The RECOUP Act of 2023 requires large banks ($10 billion+ in assets) to adopt governance standards and recover compensation from senior executives who contributed to a bank's failure through gross negligence or willful misconduct. It allows regulators to claw back bonuses, equity compensation, and profits received by these executives during the 24 months before the bank's failure. The law applies only to institutions with over $10 billion in assets and excludes executives with less than 18 months at the bank who weren't responsible for the failure. It also mandates public reports after bank failures to detail management and regulatory failures, enhancing transparency.