{"id":5194,"date":"2011-07-08T00:00:00","date_gmt":"2011-07-08T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2011\/07\/two_years_of_wall_street_execu"},"modified":"2022-04-04T16:00:07","modified_gmt":"2022-04-04T21:00:07","slug":"two-years-of-wall-street-execu","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/two-years-of-wall-street-execu\/","title":{"rendered":"Two Years of Wall Street Executives\u2019 Pay To Be Seized For Role Played in a Financial Firm\u2019s Collapse, Says FDIC"},"content":{"rendered":"<p>Federal regulators have approved a plan that would make Wall Street executives forfeit two years\u2019 pay if it was discovered that he\/she played a part in a major financial firm\u2019s collapse. Executives who are considered \u201cnegligent\u201d and \u201csubstantially responsible\u201d are subject to this rule, which clarifies that \u201cnegligence,\u201d rather than \u201cgross negligence,\u201d is the standard.<\/p>\n<p>Banks had complained that an earlier version of the rule, which said that any executive who had made strategic decisions could be found responsible for a financial firm\u2019s failure. They were worried that key executives would quit upon initial signs of trouble rather than risk their pay.<\/p>\n<p>The provision is part of a Federal Deposit Insurance Corporation rule, which is supposed to help retain stability within the economy by unwinding beleaguered firms in a manner that is less disruptive than major bankruptcies and taxpayer-financed bailouts. The rule lets the government take over a failing financial company, break it apart, and sell it off.<\/p>\n<p>The liquidation authority is a significant part of the Dodd-Frank financial oversight law. It also designates the order that creditors will be paid whenever a government liquidates a large financial firm. For example, FDIC or the receiver that carried part of the expense of taking over a firm, administrative costs, and employees that are owed money for benefits are among those that would top the list. General creditors fall lower down in order of priority.<\/p>\n<p>It is not enough that a Wall Street executive pay the government or other entities for any misconduct that caused a financial firm to fail. There are also the investors who sustained financial losses as a result of his\/her negligence. Here is where our <a href=\"https:\/\/www.securities-fraud-attorneys.com\/\">securities fraud attorneys<\/a> step in. We are committed to helping institutional investors recoup their money.<\/p>\n<p><strong>Related Web Resources:<\/strong><\/p>\n<p><a href=\"https:\/\/www.fdic.gov\/\">Federal Deposit Insurance Corporation<\/a><\/p>\n<p><strong><br \/>\nMore Blog Posts:<\/strong><\/p>\n<p><a href=\"https:\/\/www.investorlawyers.com\/blog\/2011\/03\/sec_needs_to_keep_closer_eye_o\">SEC Needs to Keep a Closer Eye on FINRA, Says Report<\/a>, Stockbroker Fraud Blog, March 15, 2011<\/p>\n<p><a href=\"https:\/\/www.investorlawyers.com\/blog\/2011\/04\/sec_is_finalizing_its_whistleb\">SEC is Finalizing Its Whistleblower Rules, Says Chairman Schapiro<\/a>, Stockbroker Fraud Blog, April 28, 2011<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/two-years-of-wall-street-execu\/#more-5194\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal regulators have approved a plan that would make Wall Street executives forfeit two years\u2019 pay if it was discovered that he\/she played a part in a major financial firm\u2019s collapse. Executives who are considered \u201cnegligent\u201d and \u201csubstantially responsible\u201d are subject to this rule, which clarifies that \u201cnegligence,\u201d rather than \u201cgross negligence,\u201d is the standard. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3960,3741],"tags":[],"class_list":["post-5194","post","type-post","status-publish","format-standard","hentry","category-doddfrank-wall-street-reform-a","category-securities-fraud"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Two Years of Wall Street Executives\u2019 Pay To Be Seized For Role Played in a Financial Firm\u2019s Collapse, Says FDIC &#8212; Investor Lawyers Blog &#8212; July 8, 2011<\/title>\n<meta name=\"description\" content=\"Federal regulators have approved a plan that would make Wall Street executives forfeit two years\u2019 pay if it was discovered that he\/she played a part in a &#8212; July 8, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/two-years-of-wall-street-execu\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Two Years of Wall Street Executives\u2019 Pay To Be Seized For Role Played in a Financial Firm\u2019s Collapse, Says FDIC &#8212; 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Investor Lawyers Blog &#8212; July 8, 2011","twitter_description":"Federal regulators have approved a plan that would make Wall Street executives forfeit two years\u2019 pay if it was discovered that he\/she played a part in a &#8212; July 8, 2011","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/two-years-of-wall-street-execu\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/two-years-of-wall-street-execu\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Two Years of Wall Street Executives\u2019 Pay To Be Seized For Role Played in a Financial Firm\u2019s Collapse, Says FDIC","datePublished":"2011-07-08T05:00:00+00:00","dateModified":"2022-04-04T21:00:07+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/two-years-of-wall-street-execu\/"},"wordCount":362,"articleSection":["Dodd-Frank Wall Street Reform and Consumer Protection Act","Securities Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/two-years-of-wall-street-execu\/","url":"https:\/\/www.investorlawyers.com\/blog\/two-years-of-wall-street-execu\/","name":"Two Years of Wall Street Executives\u2019 Pay To Be Seized For Role Played in a Financial Firm\u2019s Collapse, Says FDIC &#8212; 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