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June 23, 2023
2023-1131

Senate Banking Committee approves bill clawing back compensation from executives of failed banks, 21-2

Warren calls bill ‘reasonable compromise’; panel also approves fentanyl trafficking bill

The Senate Banking Committee on June 21 approved two bills that would: 1) empower the FDIC to recoup bonuses that senior executives received in the two years before a bank failure and increase certain other penalties on them, and 2) impose sanctions on transnational criminal organizations, such as Mexican drug cartels, for trafficking of illicit fentanyl and its raw materials. The clawbacks bill was approved 21-2, while the fentanyl bill was approved unanimously. Notably, it was the first legislative markup the Banking Committee has held since the 116th Congress of 2019–2020.

A webcast of the markup, followed by a nominations hearing for three Federal Reserve nominees, is available here. The text of prepared statements on the bills by Chairman Sherrod Brown and Ranking Member Tim Scott (R-SC) are posted here (Brown) and here (Scott). Attached with this Tax Alert please find one-page summaries of the RECOUP Act and the Fend Off Fentanyl Act.

Additional information is also available in the attached Tax Alert.

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Contact Information
For additional information concerning this Alert, please contact:
 
Washington Council Ernst & Young
   • Will Heyniger (Will.Heyniger@ey.com)
   • Bob Schellhas (Bob.Schellhas@ey.com)

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ATTACHMENTS

Senate Banking Committee approves two bills

RECOUP Act

FEND Off Fentanyl Act

 

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