The bipartisan Senate bill would mandate that large bank executives surrender their salaries and bonuses if their bank fails.

Three years after the collapse of Silicon Valley Bank, a bipartisan group of U.S. senators, which includes Sens. Elizabeth Warren (D-Mass.) and Josh Hawley (R-Mo.), reintroduced legislation to “ensure that big bank executives are not allowed to collect massive paychecks and bonuses, disregard prudent risk management, and walk away scot-free if the bank blows up.” The Failed Bank Executives Clawback Act of 2026 would ensure that the Federal Deposit Insurance Corporation has the authority to “hold executives of failed banks financially responsible for some of the costs those failures impose on the rest of the banking system and the economy,” according to a press release. The bill would allow the FDIC to claw back at least part of the compensation bank executives received over the three-year period preceding a bank’s failure. READ MORE