Bipartisan bill would empower FDIC to pursue failed bank exec clawbacks
By 
Aaron Nicodemus2023-03-30T14:42:00
A bipartisan bill seeks to require the Federal Deposit Insurance Corporation (FDIC) to claw back five years’ worth of compensation from executives who lead failed banks.
The Failed Bank Executives Clawback Act, introduced Wednesday by Sens. Elizabeth Warren (D-Mass.), Josh Hawley (R-Mo.), Catherine Cortez Masto (D-Nev.), and Mike Braun (R-Ind.), also proposed to extend clawback authorities established by the Dodd-Frank Act to apply to any bank that enters into FDIC receivership—not just banks that are liquidated.
Should a bank fail, investors in the bank’s holding company should bear the losses, the bill said.
Related articles
-
News BriefFed pledges heightened supervision following SVB collapse
The Federal Reserve Board will likely recommend strengthening regulatory and supervisory procedures for mid-sized regional banks in the aftermath of the failure of Silicon Valley Bank.
-
News Brief
Biden presses banking regs to revisit Trump-era rollbacks
President Joe Biden called on federal banking agencies to consider reforms that would largely reverse changes to regulation made during the Trump administration regarding liquidity requirements, stress tests, and more.
-
News Brief‘Textbook case of mismanagement’: Regs point blame at SVB for collapse
Banking regulators defended their supervisory actions and pledged to find answers as to what went wrong when discussing the factors leading to the failures of Silicon Valley Bank and Signature Bank before the Senate Banking Committee.
More from Regulatory Policy
-
ArticleCalifornia privacy regulator unveils new cyber, risk, and automation rules
Businesses operating in California will need to meet new, first-in-the-nation privacy requirements for cybersecurity, risk assessments, and automated decision-making technology, under a large expansion of rules by the state.
-
Basic PageDOJ, EPA take legal action against the California Air Resources Board
The U.S. Department of Justice has filed two lawsuits against the California Air Resources Board, claiming it no longer has the legal right to enforce strict emissions rules for heavy-duty trucks.
-
PremiumCompliance in the spotlight as tariffs, sanctions turn into geopolitical weapons
Navigating tariffs and sanctions is becoming a core part of compliance for many companies. As the U.S. and others use economic policies for political aims, compliance teams must adapt to this new geoeconomic trend.