Financial filings and public announcements by banks

U.S. Regulators Propose Rules to Claw Back Risky Banker Bonuses

May 6, 2024, 05:27 PM

U.S. financial regulators, including the Federal Deposit Insurance Corp. (FDIC) and the Office of the Comptroller of the Currency (OCC), have revived efforts to implement long-delayed rules on executive compensation in the banking sector. These rules aim to empower regulators to reclaim bonuses from executives who engage in overly risky behaviors. The proposal, which also involves the Federal Housing Finance Agency (FHFA) and the National Credit Union Administration (NCUA), targets financial institutions with assets over $1 billion, requiring them to incorporate risk considerations into their compensation plans. The initiative, which revisits proposals from the Obama era, seeks to mitigate risks that could lead to bailouts and other taxpayer burdens. BPI President and CEO Greg Baer issued a statement on the proposal.