Democratic Massachusetts Sen. Elizabeth Warren and Republican Ohio Sen. JD Vance are uniting to introduce legislation announced Thursday to reduce the risks of large bank failures.
The Failed Bank Executives Clawback Act would propose harsher penalties for failed bank executives, which serves as a bipartisan response to the collapse of Silicon Valley Bank (SVB) in early March, according to Warren’s office. The proposed legislation would require the Federal Deposit Insurance Corporation (FDIC) to recover some or all of executive payments from the three years prior to their bank’s failure, covering larger banks with more than $10 billion in assets.
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