Senate pushes for claw back of executive pay in wake of bank failures.
The Senate Banking Committee has approved a bill that would increase penalties for executives of failed banks, increase oversight of the Federal Reserve, and restrict megabank takeovers. The bill reflects a focus on executive mismanagement and regulatory supervision failures. The compromise, which united progressives, conservatives, and moderates on the committee, represents Congress’s most viable political option for revamping the banking system following the rescues of troubled lenders Silicon Valley Bank, Signature Bank, and First Republic earlier this year. The bill would empower regulators to claw back compensation from leaders of failed banks and expose the executives to higher civil penalties and bans from working in the industry.
