H.R. 7887 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Financial Services, Mar 9, 2026
What this bill does
In plain words · AI-written from the official summaryRestricts stock sales by bank executives during problems
This bill gives the Federal Deposit Insurance Corporation (the agency that insures bank deposits) the power to stop bank officers and executives from selling their company stock during proceedings when a bank is caught practicing unsafe or unsound banking. For senior executives at large banks, stock sales would be automatically blocked if the bank gets a certain risk management rating or receives an unresolved supervisory notice from banking regulators.
How it affects you
This change affects bank executives and officers directly, limiting when they can sell their stock. For the average person with a bank account, the idea behind it is to align executives' interests with the bank's safety and stability, though the summary doesn't spell out specific ways this changes day-to-day banking for customers.
Read the official summary (Introduced in House, Mar 9, 2026)
Incentivizing Safe and Sound Banking Act
This bill allows the Federal Deposit Insurance Corporation to, during cease-and-desist proceedings for unsafe or unsound practices in an institution, prohibit the sale of stock in a bank or holding company by an officer or director of the bank or any bank-affiliated party who received stock as compensation. Further, the bill automatically prohibits the sale of such stocks by senior executive officers at large banks if the bank receives a certain risk management rating or if the bank is under an unresolved supervisory notice issued by a banking regulator.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
2nd SessionH. R. 7887
A BILL
Incentivizing Safe and Sound Banking Act
Sponsor: Rep. Maxine Waters (D-CA-43) · Introduced Mar 9, 2026 · Finance and Financial Sector · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Mar 9, 2026: “Referred to the House Committee on Financial Services.”