Ending Presidential Corruption in Banking Act
- Sponsor
- Sen. Warren, Elizabeth [D-MA]
- Committees
- Banking, Housing, and Urban Affairs Committee (primary)
- Last action
- Sep 14, 2026
Bottom line
This bill aims to prevent conflicts of interest and the appearance of corruption by prohibiting high-ranking federal officials and their close family members from owning or controlling banks and by retroactively reviewing and terminating banking privileges granted under such circumstances.
What it actually does
This bill prohibits federal banking regulators from approving new banking applications for institutions where high-ranking federal officials, including the President, Vice President, Members of Congress, certain executive branch appointees, or the President's/VP's spouses or children, hold a controlling interest. It also mandates the retroactive termination of banking charters and licenses approved after January 20, 2025, if such a controlling interest existed. Furthermore, it makes it unlawful for the President, Vice President, or their spouses/children to own or control banks, requiring divestment within 30 days of inauguration or face termination of banking privileges.
Proponents argue
Supporters argue this bill is crucial for maintaining public trust in financial institutions and government, preventing potential abuses of power where officials could influence regulatory decisions for personal financial gain, and ensuring a level playing field for all banking applicants. They would emphasize the need for strong ethical boundaries to safeguard the integrity of the presidency and the financial system.
Opponents contend
Opponents might argue that the bill is overly broad, potentially infringing on the private property rights of individuals merely because they hold public office or are related to an officeholder. They might also contend that existing ethics laws and financial disclosure requirements are sufficient to address conflicts of interest, and that this bill could deter qualified individuals with business backgrounds from seeking public service.
The bill is very short and straightforward, making it highly accessible for any reader to understand its core provisions quickly.
Section 3(a)
Prohibition on Approving Banking Applications for Covered Persons
This provision forbids federal banking regulators (Federal Reserve Board, FDIC, OCC) from approving new applications for national bank charters, master accounts, federal deposit insurance, or other banking licenses if a 'covered person' (President, VP, Members of Congress, certain executive branch officials, EOP special government employees, or spouses/children of President/VP) directly or indirectly owns or controls more than 10% of the bank's voting securities, serves as a senior executive, or exercises controlling influence over the bank.
Supporters argue
Supporters argue this prevents potential conflicts of interest and the appearance of impropriety, ensuring that banking approvals are based solely on merit and not on political influence.
Critics contend
Critics might argue this provision is overly broad, potentially penalizing individuals for their public service by restricting their private business activities, even if no actual conflict of interest is proven.
Tradeoffs
Balances the desire to prevent corruption and maintain public trust against potential restrictions on the economic activities of public servants and their families.
Section 3(b)
Retroactive Termination of Banking Privileges
Within 60 days of the bill's enactment, federal banking regulators must terminate the charters, licenses, master accounts, and deposit insurance of any bank whose covered application was approved after January 20, 2025, if, at the time of approval, a 'covered person' (as defined in Section 2) owned, controlled, or had significant influence over the bank.
Section 4(a)
Prohibition on Bank Ownership/Control by President, VP, and their Families
This section makes it unlawful for the President, Vice President, or their spouses or children to directly or indirectly own or control more than 10% of a bank's voting securities, serve as a senior executive of a bank, or otherwise exercise a controlling influence over a bank.
Section 4(b)
Mandated Termination for Presidential/VP Non-Compliance
If the President, Vice President, or their spouse/child does not comply with the prohibition on bank ownership/control (Section 4(a)) within 30 days of their inauguration, federal banking regulators are mandated to immediately terminate the charter, license, master account, or deposit insurance of any non-compliant bank.