1. Short title This Act may be cited as the Recovering Executive Compensation Obtained from Unaccountable Practices Act of 2023 or the RECOUP Act of 2023 . 2. Removal and prohibition authorities Section 8(e) of the Federal Deposit Insurance Act ( 12 U.S.C. 1818(e) ) is amended— (1) in paragraph (1)— (A) in subparagraph (A)— (i) in clause (ii), by striking or at the end; (ii) in clause (iii), by inserting or at the end; and (iii) by adding at the end the following: (iv) in the case of a senior executive, as defined in paragraph (2)(C), failed to carry out the responsibilities of the senior executive for governance, operations, or risk or financial management of an insured depository institution or business institution; ; (B) in subparagraph (B), in the matter preceding clause (i), by inserting failure, after practice, ; and (C) in subparagraph (C)— (i) in the matter preceding clause (i), by inserting failure, after practice, ; and (ii) by striking clause (ii) and inserting the following: (ii) demonstrates— (I) willful or continuing disregard by such party for the safety or soundness of such insured depository institution or business institution; or (II) in the case of a senior executive, as defined in paragraph (2)(C), gross negligence by such senior executive in the performance of the duties of the senior executive to the insured depository institution or business institution, ; and (2) in paragraph (2)— (A) in subparagraph (A)— (i) in clause (iii), by striking or at the end; (ii) by redesignating clause (iv) as clause (v); and (iii) by inserting after clause (iii) the following: (iv) a senior executive of an insured depository institution has— (I) breached any fiduciary duty owed to the institution, if the breach is determined to require grossly negligent, reckless, or willful conduct; (II) failed to appropriately implement financial, risk, or supervisory reporting or information system or controls