Kristen Burgers Provides Legislative Update as the RECOUP Act Advances to the Senate

09.2023

In an article published in the September issue of the American Bankruptcy Institute (ABI) Journal, Hirschler bankruptcy attorney Kristen Burgers discusses the RECOUP Act. Published as part of the Journal’s “Legislative Update” section, which offers legislative news for bankruptcy attorneys, Burgers points out in the article that after three significant bank failures in quick succession at the start of 2023, Congress considered legislation to address risk management issues in the banking industry.

The Recovering Executive Compensation from Unaccountable Practices (RECOUP) Act of 2023 includes key provisions that give the FDIC authority to claw back all or part of the bonus and equity-based compensation (but not salary) and profits from the sale of bank stock received by key personnel; give bank regulators authority to ban or remove bank executives who fail to appropriately oversee and manage their bank; and impose fines and penalties of up to $3 million on bank executives who are found to have ignored warnings and enforcement actions from regulators.

Reference Material:

RECOUP Act Advances to the Senate, American Bankruptcy Institute (ABI) Journal, Kristen Burgers