Executive compensation incentives have proved among the most important reform priorities in the wake of recent bank failures. In addition to efforts to complete long-delayed regulations mandated by the Dodd-Frank Act, bipartisan Members are pressing different approaches to clawing back compensation from failed-bank executives who appear to have profited handsomely despite allowing or even encouraging untenable risks. One major, recent measure would not only grant the FDIC express clawback authority in the wake of non-systemic resolutions, but also expand clawbacks to a wide range of persons affiliated with the failed bank and to holding-company investors.
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