New Rule for Execs Causing Financial Firm Collapse

U.S. regulators will be able to snatch back up to two years of Wall Street executives' pay if they are found responsible for the collapse of a major financial firm, under a rule approved on Wednesday.
The provision is part of a broader Federal Deposit Insurance Corp rule laying out the order in which creditors will be paid during a government liquidation of a large, failing financial firm.
The 2010 Dodd-Frank financial oversight law gives financial agencies this power to recoup executives' pay. Bankers have complained regulators were too vague in an earlier proposal about what could trigger a clawback. Reuters