The Senate Banking Committee will consider a bipartisan bill that would allow government regulators to seize compensation from executives deemed responsible for a bank failure.
The committee’s chairman, Sen. Sherrod Brown (D-Ohio), and Sen Tim Scott (R-S.C.), the panel’s ranking Republican, came to a deal on June 16 after a wave of regional bank failures this year shook the financial services industry.
The collapse of three U.S. banks within months of each other led to calls from the Biden administration and Congress for tougher penalties for executives at failed financial institutions.
The 2023 bank crisis is now being met with broader criticism of the industry, as lawmakers are now expanding their tougher approach to the larger institutions….