A bipartisan group of senators released draft legislation Wednesday that would claw back executive pay in the five years leading up to a bank’s failure, following President Joe Biden’s call on Congress to take action.
Democratic Sens. Elizabeth Warren of Massachusetts and Catherine Cortez Masto of Nevada were joined by Republican Sens. Mike Braun of Indiana and Josh Hawley of Missouri on the draft bill that would direct the Federal Deposit Insurance Corporation to confiscate executive compensation when it takes over a failed bank.
“Americans are sick and tired of fat cat bankers paying themselves handsomely while risking other people’s hard earned money,” Warren said in a statement. “It’s time for Congress to step up and strengthen the law so bank executives bear the cost of failure, not line their pockets and walk away scot-free.”
