FDIC Paves Way To Reclaim Pay From Failed Banks' Execs

Law360, New York (July 6, 2011, 1:22 PM EDT) -- The Federal Deposit Insurance Corp. on Wednesday approved rules allowing bank regulators to take back up to two years of pay from executives who drove financial firms into the ground.

The rules, approved in a unanimous vote in FDIC Chairwoman Sheila Bair's last meeting, were required under the Dodd-Frank Act and allow regulators to claw back money from executives deemed to have been "substantially responsible" for the collapse of their firms. The regulations are part of a larger package of rules controlling the government's liquidation for...
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