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Expert Analysis

A New Negligence Standard For Compensation Clawback

Law360, New York (July 21, 2011, 1:45 PM EDT) -- The U.S. Federal Deposit Insurance Corporation has adopted final rules which provide that the FDIC, as receiver of a covered financial company, may recover from senior executives and directors who were substantially responsible for the failed condition of the company any compensation they received during the two-year period preceding the date on which the FDIC was appointed as receiver, or for an unlimited period in the case of fraud....

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