Frank Floats Bill To Deny Clawback Coverage For Execs

Law360, New York (May 30, 2012, 3:20 PM EDT) -- Rep. Barney Frank, D-Mass., introduced legislation Wednesday that would bar financial firm executives from buying insurance to protect themselves from civil penalties and compensation clawbacks imposed by regulators for risky behavior, a key prong of the financial reform law he co-authored.

The bill, titled the Executive Compensation Clawback Full Enforcement Act of 2012, would bar any officer, director or employee of a financial firm from purchasing insurance or other forms of hedging to protect their personal assets from civil penalties or compensation clawbacks authorized by federal...
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