US Senators Revive Bipartisan Bill to Claw Back Pay From Failed-Bank Executives

Silicon Valley Bank (SVB) collapsed on March 10, 2023, at an estimated cost of $20 billion to the Federal Deposit Insurance Corporation (FDIC) fund. Former CEO Greg Becker nevertheless received nearly $40 million in compensation between 2019 and 2023, highlighting the limits of current clawback powers and a gap in executive accountability.

On March 11, 2026, a bipartisan group of 14 senators, including Elizabeth Warren and Josh Hawley, reintroduced the Failed Bank Executives Clawback Act. The bill would apply to banks with at least $10 billion in assets and require the FDIC to recover all or part of executives’ compensation from the three years preceding a failure, with the proceeds returned to the Deposit Insurance Fund. A similar version introduced in 2023 did not become law.