Spartz
Rep. Victoria Spartz (R-Ind.-05) introduced on Friday the bipartisan Failed Bank Executives Clawback Act in the House of Representatives with Rep. Katie Porter (D-Calif.-47).
This legislation is in response to the recent failures of large U.S. banks, including Silicon Valley Bank and Signature Bank, and aims to hold executives accountable for their actions. The Senate companion to this bill was introduced in March by Senators Mike Braun (R-Ind.), Catherine Cortez-Masto (D-Nev.), Josh Hawley (R-Mo), and Elizabeth Warren (D-Mass.).
“We cannot be a country with institutions ‘too big to fail’ and policies where reckless executives are not held accountable and shift the risk to taxpayers,” Rep. Spartz said. “The general public should not be on the hook for bad business decisions.”
The Failed Bank Executives Clawback Act outlines a series of provisions that will allow financial regulators to pursue clawbacks against failed bank executives of FDIC-insured institutions, especially those who engage in fraudulent behavior or gross negligence.