The notion of seizing windfalls from stock sales gained traction after it emerged that Silicon Valley Bank CEO Greg Becker sold $3.6 million in his company's stock just before its failure. Investigators for the Justice Department and the Securities and Exchange Commission probing the bank's collapse are examining those sales, according to the Wall Street Journal.
The bill from Brown and Scott would authorize the FDIC to recoup proceeds from such stock sales as well as bonuses that executives receive in the 24 months leading up to a failure. Executives who "recklessly" violate the law or engage in "unsafe and unsound practices" could also face penalties up to $3 million…
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