Heads of failed banks questioned on executive pay, how they handled risk at Senate hearing

Executives from two large U.S. banks that failed dramatically in March appeared in front of the Senate Banking Committee to respond to questions about why their banks went under and what regulators could have done to avoid the calamities.

Along with questions about how these banks failed, senators used the hearing to also address executive pay and whether senior executives in the U.S. are being rewarded more for short-term gains — like rising stock prices — than for ensuring their companies’ long-term health. READ MORE