FDIC Can Rule on Golden Parachutes for Bank Execs, Court Says

The FDIC can determine whether severance payments to former executives at troubled banks are “golden parachutes” even if the payouts are being disputed by the parties, a federal appeals court ruled.

The U.S. Court of Appeals for the D.C. Circuit on Tuesday overturned a lower court ruling that the Federal Deposit Insurance Corp. lacked the authority to determine whether payments to a pair of executives at a bank that ran into trouble during the 2008 financial crisis were excessive.

“Nothing in the relevant statute or regulations requires that the FDIC be presented with a precise dollar figure before it has ...