WASHINGTON, June 16 (Reuters) – The U.S. Senate Banking Committee will take into account a invoice Wednesday that will enable regulators to claw again compensation for executives at failed banks.
The measure, backed by committee Chairman Sherrod Brown and Senator Tim Scott, the panel’s high Republican, would give regulators the flexibility to reclaim two years’ value of compensation paid out to executives after a financial institution failure, in addition to strengthen their potential to evaluate civil penalties on executives who fail to adequately handle their banks.
The invoice, which additionally would require banks to incorporate of their bylaws requirements round accountable financial institution administration, is available in response to the abrupt failures of Silicon Valley Financial institution and different banks in latest months, which set off broader turmoil within the banking sector.
Given the backing of senior members on the panel from each events, the laws could also be Congress’s greatest probability to enact a brand new regulation in response to that disaster, which was met with broad criticism of the trade and financial institution supervisors by lawmakers.
“Individuals have watched executives take their cash, run banks into the bottom, and get away with it too many occasions earlier than. It’s time for CEOs to face penalties for his or her actions, similar to everybody else,” mentioned Brown in an announcement.
Reporting by Pete Schroeder, modifying by Deepa Babington
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