the us senate banking committee is poised to deliberate wednesday on a groundbreaking bill that would grant regulators unprecedented powers to claw back executives’ compensation in the aftermath of bank failures the proposed legislation championed by senate banking committee chairman sherrod brown dohio and sen tim scott rsc seeks to increase regulatory authority and ensure greater accountability following the rash of bank failures in march such as the meltdowns witnessed in silicon valley bank and other regional lenders following those events the white house urged congress to give the federal deposit insurance corporation fdic the authority to seize executive bonuses and stock sale proceeds in the event of a bank failure americans have watched executives take their money run banks into the ground and get away with it too many times before its time for ceos to face consequences for their actions just like everyone else said brown the recovering executive compensation from unaccountable practices recoup act would enable the fdic and a bank’s board to seize executives’ compensation received in the 24 months prior to a banks failure  furthermore the proposal would ban senior executives and directors of the bank and its affiliates from participating in the financial industry for at least two years if they violated any rules engaged in unsound conduct or breached a fiduciary duty the bill could also restrain the activity of bank executives stock sales ahead of the collapse authorizing the fdic to confiscate stock sale proceeds prior to a bank failure former silicon valley bank ceo greg becker sold 36 million in company stock prior to the bank’s failure and bank employees received bonuses hours before the fdic seized control of the bank the measure has sparked intense tensions within the committee particularly with sen elizabeth warren dmass who has amassed nearly half of the committee’s support in her quest for stricter clawback provisions americans are sick and tired of fat cat bankers paying themselves handsomely while risking other people’s hardearned money warren said in a statement it’s time for congress to step up and strengthen the law so bank executives bear the cost of failure not line their pockets and walk away scotfree” according to inside sources warren may advocate for an extension up to threeyear clawback lookback period an expanded definition of remuneration to include salaries and a broader range of executives subject to accountability read now powell to testify before congress after fed pause what the market is watching for