FDIC Proposes Two-Year Clawback

The Federal Deposit Insurance Corp. has voted unanimously to propose a rule that calls for the clawback of up to two years’ pay from senior executives and directors at a systemically important financial institution if they are found to be “substantially responsible” for the firm’s failure, reports Bloomberg.

The Federal Deposit Insurance Corp. has voted unanimously to propose a rule that calls for the clawback of up to two years’ pay from senior executives and directors at a systemically important financial institution if they are found to be “substantially responsible” for the firm’s failure. The two-year pay period would begin from the date the FDIC is appointed receiver of the institution.

Click here to read the story from Bloomberg.