A bipartisan effort to ‘claw back’ compensation from bank executives who oversee a failure advanced in the Senate Wednesday, one of the most significant legislative moves to rein in the industry since the collapse of Silicon Valley Bank. The bill advanced out of the Senate Committee on Banking, Housing, and Urban Affairs in a vote of 21 to 2. It came after late-night negotiations with a host of senators haggling up until the last minute on how much power to give regulators when confronting...

At least 9 lawmakers from both parties sold banking stocks during the financial turmoil in March, disclosures that are already renewing calls for an outright ban of Congressional stock trading. Notable traders include Rep. Josh Gottheimer (D-NJ), who sold Silicon Valley Bank stock after that bank had signaled deep trouble and one day before regulators seized the lender. There is also Rep. Jared Moskowitz (D-FL). An account linked to the freshman Congressman sold shares of Seacoast Banking...

The stunning events around Silicon Valley Bank of California and Signature Bank of New York come after years of moves in Washington to ease capital requirements on smaller and regional banks — including one that came just last week. In a letter dated March 3 to Federal Reserve Chair Jerome Powell, Sen. Tim Scott (R-SC), the ranking member of the Senate Banking Committee, and nine of his GOP colleagues expressed concern that an ongoing Federal Reserve review may go beyond a 2018 law that eased...

After an anticlimactic end to the issue in 2022, Congress is again setting up another debate over policing stock trading among lawmakers. So far this year, three bills have been formally introduced to ban lawmakers from trading as the headlines keep coming. This week, it was the news that Paul Pelosi, husband of Speaker Emerita Nancy Pelosi (D-CA), sold 30,000 shares of Google just weeks before the Justice Department filed a lawsuit against the company. So far, the efforts on the bill range...

Payment for order flow has helped companies like Robinhood (HOOD) change the world of retail investing. But this technical trading maneuver has become a problem for many in Washington: Congressional hearings have targeted the practice, as some have characterized it as a kickback for brokerages. Meanwhile, the SEC has said a ban of payment for order flow is very much “on the table.” But one lawmaker wants to move in the opposite direction and stop action before it begins. Sen. Pat Toomey (R.,...