FDIC Halts Bonuses for Dozens of Officials Under Investigation

The Federal Deposit Insurance Corp. suspended bonuses for about two dozen executives under investigation for misconduct.

The FDIC Board approved eliminating the bonuses if allegations against the officials were substantiated at a meeting earlier this week, a spokesperson for the regulator said Friday, adding that the policy only affects supervisors, managers and executives.

Some officials said the money should be paid and then clawed back if needed, according to the Wall Street Journal, which reported the bonus suspensions earlier. Board member Jonathan McKernan said he sought to add the proposal to the meeting agenda, the newspaper said.

The FDIC struggled ...