"Senators propose bill to hold bank executives accountable for failures through compensation clawbacks"

A bipartisan group of senators has introduced the Failed Bank Executives Clawback Act, which would give regulators the authority to claw back executive compensation and bonuses from failed banks. The bill would mandate that federal regulators return to a bank all or part of the compensation its executives had received in the five years leading up to a bank’s failure. The legislation would also ensure that when an insured depository institution affiliated with a bank holding company fails, investors in the holding company bear the losses of that institution.