{"id":1948956,"date":"2023-06-16T10:12:02","date_gmt":"2023-06-16T14:12:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bipartisan-agreement-reached-on-bill-to-claw-back-earnings-from-ceos-of-failed-banks\/"},"modified":"2023-06-16T10:15:28","modified_gmt":"2023-06-16T14:15:28","slug":"bipartisan-agreement-reached-on-bill-to-claw-back-earnings-from-ceos-of-failed-banks","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bipartisan-agreement-reached-on-bill-to-claw-back-earnings-from-ceos-of-failed-banks\/","title":{"rendered":"Bipartisan deal reached to recover earnings from CEOs of failed banks."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbipartisan-agreement-reached-on-bill-to-claw-back-earnings-from-ceos-of-failed-banks%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1948956&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>The Senate Banking Committee to Debate Bill Punishing Executives of Failing Banks<\/h2>\n<p>The Senate Banking Committee has announced that it will be engaging in a crucial debate regarding a bill aimed at holding executives of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/conservative-attorneys-general-investigate-six-major-banks-for-wokeness\/\" title=\"Conservative Attorneys General Investigate Six Major Banks For Wokeness\">big banks accountable<\/a> for their failures. This bipartisan legislation, known as the Recovering Executive Compensation Obtained from Unaccountable Practices (RECOUP) Act, has a higher chance of becoming law due to its bipartisan support.<\/p>\n<h3>Preventing Bank Failures and Ensuring Consequences<\/h3>\n<p>Chairman Sherrod Brown (D-OH) and Ranking Member Tim Scott (R-SC) have reached an agreement on the RECOUP Act, emphasizing the importance of preventing bank failures by discouraging executives from allowing their institutions to collapse.<\/p>\n<blockquote>\n<p>\u201cAmericans have watched executives take their money, run banks into the ground, and get away with it too many times before. It\u2019s time for CEOs to face consequences for their actions, just like everyone else,\u201d Brown said.<\/p>\n<\/blockquote>\n<p>The legislation proposes empowering regulators to recover bank executives&#8217; compensation from the two years preceding a firm&#8217;s collapse. In the event of a failure, executives may also be required to surrender their bonuses and profits from the sale of bank stock.<\/p>\n<p>Furthermore, the bill seeks to increase the civil penalty imposed on executives who &#8220;recklessly&#8221; violate the law from $1 million to $3 million.<\/p>\n<blockquote>\n<p>\u201cThe recent bank failures didn\u2019t happen in a vacuum \u2013 the banks\u2019 executives failed to manage their risk, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/svb-collapse-bank-crisis-becomes-another-biden-vs-trump-war-ahead-of-2024\/\" title=\"SVB collapse: Bank crisis becomes another Biden vs. Trump war ahead of 2024\">regulators failed<\/a> to exercise their supervisory responsibilities, and the Biden administration failed to stop spending, which led to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-to-leapfrog-u-s-as-worlds-biggest-economy-by-2028-think-tank\/\" title=\"China to leapfrog U.S. as world\u2019s biggest economy by 2028 \u2013 think tank\">rising interest rates<\/a>,\u201d said Scott.<\/p>\n<\/blockquote>\n<h3>Addressing Recent Bank Failures and Containing the Fallout<\/h3>\n<p>The announcement comes in the wake of the sudden collapse of Silicon Valley Bank, which was taken over by the Federal Deposit Insurance Corporation in March. This event caused significant turmoil in the banking system and raised concerns about a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bipartisan-agreement-reached-on-bill-to-claw-back-earnings-from-ceos-of-failed-banks\/\" title=\"Bipartisan deal reached to recover earnings from CEOs of failed banks.\">potential contagion effect leading<\/a> to a chain of failures. However, the federal government&#8217;s decision to guarantee all deposits in Silicon Valley Bank and Signature Bank, including those exceeding the FDIC&#8217;s threshold, helped contain the fallout.<\/p>\n<p>The Federal Reserve has attributed SVB&#8217;s collapse to the failure of its leadership in managing basic interest rate and liquidity risk. However, it also acknowledged that Fed supervisors did not take sufficient action to mitigate risks leading up to the failure.<\/p>\n<p>Given the bipartisan support for this legislation, it is highly likely to receive a favorable floor vote.<\/p>\n<p><strong>Click here to read more from The Washington Examiner.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Senate Banking Committee will debate a bipartisan bill to penalize executives of failed big banks. Chairman Sherrod Brown (D-OH) and Ranking Member Tim Scott (R-SC) announced their agreement, increasing the chances of the legislation becoming law.<\/p>\n","protected":false},"author":1,"featured_media":1948957,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[8961,3667,7268,3715,11333,5886,8833,8423],"class_list":["post-1948956","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-banks","tag-bipartisan","tag-ceos","tag-deal","tag-earnings","tag-failed","tag-reached","tag-recover"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1948956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1948956"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1948956\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1948957"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1948956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1948956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1948956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}