Tags: FDIC | Banker Pay

Rules Lets FDIC Recover Pay From Failed Bank Execs

Wednesday, 06 Jul 2011 12:36 PM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink

Federal regulators will be able to take back two years of pay from executives deemed responsible for a large bank's failure.

The board of the Federal Deposit Insurance Corp. on Wednesday approved a rule allowing the government to recapture the money from any executive deemed "negligent" and "substantially responsible" for a bank's failure.

Banks objected to an earlier version of the rule that they said might induce key executives to jump at the first sign of trouble.

The rule is part of the financial overhaul passed last summer. Regulators gained broad powers to recapture pay from executives of large, failed financial companies.

The FDIC is in charge of a section of the overhaul that creates an orderly way for shutting down large, failing banks to prevent a crisis from spreading.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved