S. 825: Protecting Consumers from Bailouts Act

This bill places limitations on special assessments imposed by the Federal Deposit Insurance Corporation (FDIC) on banks. (After the FDIC assists an institution in an emergency such as a bank failure, these special assessments are levied by the FDIC to recover costs.) The bill also grants the FDIC authority to recover certain compensation paid to an officer.

Specifically, the bill prohibits the FDIC from imposing a special assessment on banks with assets under $10 billion. The bill also prohibits depository institutions that are required to pay a special assessment in connection with the March 2023 emergency involving Silicon Valley Bank and Signature Bank from increasing customer fees or charges to offset these costs.

The bill also grants the FDIC the authority to seek reimbursement of any incentive-based compensation paid during the previous year to an officer of an institution in FDIC receivership.

Written by the Congressional Research Service, Library of Congress.