A bipartisan group of 14 senators has reintroduced legislation to require the FDIC to “claw back” bank executive pay following a large bank failure.
The Failed Bank Executives Clawback Act would mandate that the agency seek all or part of the compensation that large bank executives received during a three-year period preceding a bank’s failure, according to the bill’s sponsors. The legislation defines a large bank as one with at least $10 billion in assets.
A similar bill was introduced following the failure of Silicon Valley Bank in 2023 but failed to generate enough support to become law.
Sen. Elizabeth Warren (D-Mass.) is lead sponsor of the bill along with Sens. Josh Hawley (R-Mo.), Catherine Cortez Masto (D-Nev.), Ruben Gallego (D-Ariz) and Katie Britt (R-Ala.)
The bill’s cosponsors are Sens. Kevin Cramer (R-N.D.), Mark Warner (D-Va.), Chris Van Hollen (D-Md.), Tina Smith (D-Minn.), Andy Kim (D-N.J.), Raphael Warnock (D-Ga.), John Fetterman (D-Pa.), Lisa Blunt Rochester (D-Del.) and Angela Alsobrooks (D-Md.).
