Warren teams up with Vance on bill to claw back earnings from CEOs of failed banks

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.SenWarren and Sen JDVance1 have teamed up on a bill to punish executives of big banks that fail. Both say the legislation will help prevent future failures, like that of SVB, by incentivizing bank CEOs to prevent their institutions from collapsing.

The legislation unveiled Thursday makes odd bedfellows of the two — Warren is one of the most liberal lawmakers in Congress, and Vance one of the more conservative. Still, both say the legislation will help prevent future failures, like that of Silicon Valley Bank, by incentivizing bank CEOs to prevent their institutions from collapsing.The bill would require the Federal Deposit Insurance Corporation to claw back pay for executives that led banks that go under.

The duo hopes to get a vote on the proposal in the Senate Banking Committee, which is chaired by Sen. Sherrod Brown . The legislation already has the backing of nearly a dozen senators in the 23-member committee. “Bank CEOs pay themselves fat bonuses as they run their banks into the ground. Often taxpayers then pick up the tab. It’s time to give taxpayers the ability to fight back,” Vance tweeted on Thursday after the bill was announced.

 

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