Today, the Senate Banking Committee meets for a relatively rare event: a legislative markup. It’s actually the first legislative markup under committee chair Sen. Sherrod Brown (D-OH), who took over the gavel in 2021. (There have been several dozen nomination markups, but nothing for legislation.)

Senate committees in general reserve markups for legislation that can pass, and the Recovering Executive Compensation Obtained from Unaccountable Practices (RECOUP) Act, a joint measure from Brown and the committee’s ranking Republican, Sen. Tim Scott (R-SC), is that kind of bill. It seeks to hold executives who bankrupt their companies more accountable, empowering the Federal Deposit Insurance Corporation (FDIC) to claw back compensation, remove executives from their positions and the industry at large, and impose civil penalties. The legislation follows the collapse this spring of Silicon Valley Bank and other large regionals that failed to manage interest-rate risk. READ MORE