Financial execs will pay for failure

Last Updated: 4:11 AM, July 7, 2011

Posted: 12:21 AM, July 7, 2011


It's a Wall Street cash grab -- for Uncle Sam.

The Federal Deposit Insurance Corp., which was granted authority in the massive Dodd-Frank legislation to dig into the prodigiously deep pockets of Wall Street bankers and claw back compensation in the event their firm mounts a Lehman Brothers-like collapse, voted yesterday to pursue such penalties.

The move allows the FDIC to recover cash from bonuses and other compensation as far back as two years from executives deemed "substantially responsible" for the collapse.

The government agency also approved rules under Dodd-Frank that grant it authority to oversee the dismantling of any institution on the brink of collapse -- not just banks that it regulates.

Sheila Bair
Bloomberg
Sheila Bair

The FDIC vote marked the last meeting over which Chairwoman Sheila Bair will preside. She is expected to step down by week's end. Vice Chairman Martin Gruenberg is expected to replace Bair.

The once-sleepy FDIC has grown into one of the more powerful regulators under Bair's tenure, and bankers have bristled as it has grown in stature.

Indeed, the agency's new ability to recover cash from bankers has proved controversial for the industry; some have voiced concerns that the rule is vague and may be difficult to enforce.

The FDIC is expected to determine the amount that it claws back based on the agency's assessment on how much of a role that official played and the size of the liquidation costs.

According to the language of the new rule, an executive would be deemed liable if he failed to act "with the degree of skill and care an ordinarily prudent person in a like position would exercise under similar circumstances."

"This rule will have a direct impact on market interactions, and that's kind of the idea," Bair told Bloomberg during a TV interview.

In the coming weeks, the FDIC also is expected to hash over plans that would force some of the largest banks to create their own so-called living wills, in the event that they have to be wound down in an orderly fashion during a crisis. mark.decambre@nypost.com

Views: 39

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega posted a blog post

How You Provoke a Civil War

In the world of counter intelligence which is simply one aspect of many pertaining to asymmetrical…See More
3 hours ago
Burbia commented on Burbia's video
Thumbnail

CHARLIE KIRK WAS CNP! JOSH REEVES 9-11-25

"I don't follow as much with Josh Reeves than I use to. He seems to be a documentary producing…"
yesterday
Burbia posted a video

CHARLIE KIRK WAS CNP! JOSH REEVES 9-11-25

DONATE-paypal-dayglow76@yahoo.comCashapp-reevesradioVenmo-Josh-Reeves-61FILMS AND AUDIOBOOKS DOWNLOAD STORE-https://store.payloadz.com/results/242828-josh-re...
yesterday
Doc Vega posted blog posts
yesterday
tjdavis posted a video

CHARLIE KIRK VIDEO THAT KEEPS GETTING REMOVED OFF OF SEVERAL PLATFORMS

I had not planned to share this publicly, but I believe Advar, who spoke with Charlie Kirk while I was very ill, would have wanted me to. After my interview ...
yesterday
pohonemas33 team commented on Chris of the family Masters's photo
Thumbnail

Gold-Coast-Message

"untuk bermain slot, kamu cukup kunjungi situs kacang99 pasti langsung gacor"
Wednesday
Doc Vega posted blog posts
Wednesday
Burbia posted a blog post

Former President Trump?

When was this article written? It is attributed to Victor Davis Hanson. He is a Fellow at Hoover…See More
Tuesday
Doc Vega posted a blog post

Don’t Go Hunting For Bigfoot

It is October 19, 2019 at 5:46 AM. This will be the last time any visual evidence of Mark is seen…See More
Monday
tjdavis posted a video

Most Corrupt Series: Elizabeth Warren | Forgotten History

Elizabeth Warren has built her reputation as a "reformer", but her political career has also drawn sharp criticism. Questions have been raised about her fina...
Sep 19
Doc Vega commented on Doc Vega's blog post Ashrams and Moonies Perfect Case for Mind Control
"less prone, Thanks for your support Buddy! "
Sep 18
Doc Vega posted a photo

main-thumb-ti-6724328-100-cnsgqkrgkrhyeyyerazynmuwoplecnbx

When will they put Trump on Mt. Rushmore?
Sep 18
Doc Vega's 4 blog posts were featured
Sep 18
Burbia's blog post was featured

Charlie Kirk Assassination

September 10th 2025 in Utah Turning Point USA CEO has been assassinated. Coincidentally,  answering…See More
Sep 18
Charles Magus's blog post was featured

FURTHER PROOF OF WALK-INS! Prisoners of the Dulce Base by Sherry Shriner

There is a real connection between the Cabal and what is happening at this Undergroung…See More
Sep 18
Less Prone favorited Doc Vega's blog post Ashrams and Moonies Perfect Case for Mind Control
Sep 18
Less Prone commented on tjdavis's blog post Sentient World Simulation
"Cannot open the link"
Sep 18
Tina Sullivan is now a member of 12160 Social Network
Sep 18
Doc Vega posted blog posts
Sep 17
Sandy posted a video

We’re cooked

We’re cooked
Sep 17

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted