F.D.I.C. Rule Puts at Risk 2 Years of Executives’ Pay

Federal regulators will be able to take 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 plan approved Wednesday.

The provision is part of a broader Federal Deposit Insurance Corporation rule laying out the order in which creditors will be paid during a government liquidation of a large, failing financial firm.

The Dodd-Frank financial oversight law gives financial agencies the power to recoup executives’ pay, but bankers were complaining that regulators were taking it too far.