Senators propose bill to recover executive pay after bank failures.

A bipartisan group of senators has introduced the Failed Bank Executive Clawback Act, which would give regulators the authority to claw back executive compensation after bank failures. The bill would require federal regulators to claw back all or part of the compensation received by bank executives in the five years leading up to a bank's failure. The legislation would amend the Federal Deposit Insurance Act to clarify that the FDIC and other regulators have to claw back compensation that could include executive salaries, bonuses, profits realized from buying or selling securities, and other awards. The bill follows a call from President Biden earlier this month for lawmakers to give regulators the authority to claw back executive compensation.