Senate Banking Committee Considers Bill to Revoke Failed Bank Executives' Pay

The Senate Banking Committee is set to consider a bipartisan bill called the RECOUP Act that would allow regulators to rescind compensation from executives of failed banks and impose penalties for misconduct.
The bill defines "senior executives" as top leadership and certain directors and would authorize the DIC to claw back pay and bonuses up to two years before a bank's collapse.
Senators Tim Scott and Elizabeth Warren have backed separate bipartisan bills aiming to increase accountability for failed bank executives.
The legislation comes in response to several regional bank failures that had a domino effect, wiping out major institutions like Silicon Valley Bank.
The FDIC Chair has signaled support for laws clawing back executive pay in the event of bank failures.