S. 5389 – Reading Mode

119th CONGRESS

2d Session

S. 5389

IN THE SENATE OF THE UNITED STATES

September 14, 2026

Ms. Warren (for herself, Mr. Reed, Mr. Van Hollen, Mr. Murphy, Mr. Sanders, Mr. Blumenthal, Mr. Kim, Ms. Alsobrooks, Mr. Gallego, Ms. Blunt Rochester, Ms. Duckworth, Ms. Hirono, Mr. Coons, and Mr. Kelly) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To prevent corruption in banking applications, to prohibit Presidents from owning or controlling banks, and for other purposes.

Short title

This Act may be cited as the Ending Presidential Corruption in Banking Act.

Definitions

In this Act:

(1)

Bank

The term bank means—

(A)

a depository institution, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and

(B)

any company that has control over a depository institution.

(2)

Covered application

The term covered application means an application for—

(A)

a national bank charter;

(B)

a master account;

(C)

Federal deposit insurance; or

(D)

any other banking license under Federal law.

(3)

Covered person

The term covered person means—

(A)

the President;

(B)

the Vice President;

(C)

a Member of Congress;

(D)

an individual appointed to a position in a department or agency of the executive branch of the United States for which appointment is required to be made by the President, by and with the advice and consent of the Senate;

(E)

a special Government employee, as defined in section 202 of title 18, United States Code, associated with the Executive Office of the President; or

(F)

a spouse or child of the President or Vice President.

Preventing corruption in banking applications

(a)

Prohibition on approving covered applications for covered persons

The Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency may not approve a covered application if a covered person, directly or indirectly, or acting through or in concert with 1 or more persons—

(1)

owns, controls, or has the power to vote more than 10 percent of any class of voting securities of the bank;

(2)

is an organizer or senior executive of the bank; or

(3)

otherwise exercises a controlling influence over the bank.

(b)

Review and termination

Not later than 60 days after the date of enactment of this Act, the Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency shall terminate the charters, licenses, master accounts, and deposit insurance of those banks that had a covered application approved after January 20, 2025, while a covered person, directly or indirectly, or acting through or in concert with 1 or more persons—

(1)

owned, controlled, or had the power to vote more than 10 percent of any class of voting securities of the bank;

(2)

was an organizer or senior executive of the bank; or

(3)

otherwise exercised a controlling influence over the bank.

Prohibiting Presidential banks

(a)

In general

It shall be unlawful for the President or Vice President, or a spouse or child of the President or Vice President, directly or indirectly, or acting through or in concert with 1 or more persons, to—

(1)

own, control, or have the power to vote more than 10 percent of any class of voting securities of a bank;

(2)

serve as a senior executive of a bank; or

(3)

otherwise exercise a controlling influence over a bank.

(b)

Termination

If the President, Vice President, or a spouse or child of the President or Vice President, as applicable, has not come into compliance with subsection (a) before the end of the 30-day period beginning on the date of inauguration of the President or Vice President, as applicable, the Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency shall immediately terminate the charter, license, master account, or deposit insurance of any bank described in subsection (a).