Bank Executive Pay, Cannabis Bills on Tap in Senate Before July

Senate Banking Committee Chairman Sherrod Brown said his panel will mark up legislation dealing with executive compensation in the US banking industry before the July 4 recess.

Legislation addressing abuses and mismanagement seen at banks including failed Silicon Valley Bank (SVB) and Signature Bank will move in committee before lawmakers depart for their next break, Brown (D-Ohio) said in an interview late Tuesday. That break is now expected by June 22.

Brown speaks during a hearing in Washington, DC, on May 18.

Photographer: Al Drago/Bloomberg

Brown earlier sharply criticized bank officials for distributing bonuses and authorizing stock purchases before the banks’ collapse and is said to have been evaluating proposals to empower regulators to claw back compensation from their executives.

The senator said other bills he plans to move in committee later this month include those to give the exploding cannabis industry access to traditional banking services and another to help combat the fentanyl crisis.

“We’re looking at markup on the fentanyl issue, the executive compensation issue, and the Safe Banking Act issue and we want to do all that in the next two or three weeks,” Brown said outlining his agenda.

Brown said he expects all the bills will be ready for Senate floor action but declined to discuss their prospects. Majority Leader Chuck Schumer (D-N.Y.) pledged to advance legislation this year to legalize marijuana use on the federal level and give the new industry access to banking services. Both the cannabis and fentanyl bills have strong bipartisan support.

Brown didn’t discuss details, but both he and committee ranking member Sen. Tim Scott (R-S.C.), a candidate for his party’s presidential nomination next year, expressed support for the stand-alone legislation Sens. Jeff Merkley (D-Ore.) and Steve Daines (R-Mont.) recently introduced to give industry full access to the banking and payments system (S. 1323).

They also back the Fentanyl Eradication and Narcotics Deterrence (FEND) Off Fentanyl Act (S. 1271) also sponsored by leaders from the Armed Services and Foreign Relations committees. The bill would impose sanctions on the drug trade and the money laundering that makes it profitable, Brown’s committee said.

Less certain is support for the legislation dealing with executive compensation. Brown said he’s working with members of the committee on a plan to strengthen oversight of bank executives and create meaningful punishments and deterrents. However, Scott has called SVB an “anomaly” and said regional banking institutions are mostly run by competent individuals.