S. 5389: Ending Presidential Corruption in Banking Act

This bill would place new limits on presidents, vice presidents, members of Congress, certain senior executive branch appointees, and some White House-related staff when it comes to bank ownership and control.

What counts as a bank or covered application

The bill uses a broad definition of bank, including ordinary FDIC-insured banks and companies that control such banks. It also defines a covered application as an application for:

• a national bank charter;
• a Federal Reserve master account;
• federal deposit insurance; or
• any other banking license under federal law.

Who is covered

The bill applies to the President, Vice President, Members of Congress, certain presidentially appointed executive branch officials, special government employees in the Executive Office of the President, and the spouses and children of the President or Vice President.

Limits on banking approvals involving covered people

Federal banking regulators would be barred from approving a covered banking application if a covered person, directly or indirectly, or acting together with others:

• owns or controls more than 10% of the bank’s voting securities;
• serves as an organizer or senior executive of the bank; or
• otherwise has a controlling influence over the bank.

Retroactive review of certain banks

Within 60 days after enactment, the Federal Reserve, FDIC, and OCC would have to terminate the charter, license, master account, and deposit insurance of banks that received approval for a covered application after January 20, 2025, if a covered person had the prohibited level of ownership, control, executive role, or controlling influence at the time of approval.

Restrictions on the President and Vice President

The bill would also make it unlawful for the President, Vice President, or their spouses or children to:

• own or control more than 10% of a bank’s voting securities;
• serve as a senior executive of a bank; or
• otherwise exercise controlling influence over a bank.

Penalty for noncompliance after inauguration

If the President or Vice President, or their spouse or child, does not comply within 30 days after inauguration, regulators would be required to immediately terminate the charter, license, master account, or deposit insurance of any bank involved.

Relevant Companies

None found