The Senate Banking Committee approved a bill on Wednesday that would empower regulators to take back compensation for executives of failed banks and institute penalties for misconduct. The bill, known as the Recovering Executive Compensation from Unaccountable Practices Act (RECOUP Act), aims to hold executives responsible for bank failures.
The RECOUP Act would allow the Federal Deposit Insurance Corporation (FDIC) to retrieve all or part of the compensation received by bank executives during the two years before a collapse. Furthermore, it would strengthen regulators’ authority to ban or remove executives who fail to adequately oversee and manage their banks.
Meanwhile, Indian Prime Minister Narendra Modi’s visit to the United States is facing scrutiny over his human rights record. Critics have accused President Joe Biden of remaining silent on Modi’s alleged autocratic rule and human rights abuses in India.
Modi’s visit also comes amid efforts by the White House to encourage US chip companies to invest in India and reduce reliance on China. The Indian Prime Minister aims to establish India as a hub for semiconductor manufacturing and testing.
Despite concerns, White House officials have stated that President Biden will privately address human rights issues with Modi. They emphasized that the discussions would be conducted without seeking to assert that the US does not face challenges of its own.
Narendra Modi served as the Chief Minister of Gujarat and a member of parliament before assuming the role of prime minister in May 2014. He was previously denied entry into the United States in 2005 due to his alleged involvement in failing to prevent deadly riots against minority Muslims in his state. In response, India denied visas to a US government panel seeking to review Indian religious freedom in 2020.
Biden’s reliance on Modi has been linked to efforts to counter Russia and China geopolitically. By maintaining a strong relationship with India, the US aims to dissuade Indian support for Russia in its conflict with Ukraine and to serve as a counterbalance to China. The partnership with India is part of Biden’s strategy to promote democracy in the Pacific, alongside countries like Australia and Japan.
However, human rights activists have expressed concern over Biden’s support for Modi. They argue that India’s human rights situation has deteriorated significantly under Modi’s leadership. Multiple reports highlight instances of violence against Muslims, discrimination, and restrictions on their rights.
Ricken Patel, founder of the Avaaz nonprofit, publicly questioned Biden’s decision to remain silent on India’s alleged slide toward autocracy under Modi’s Bharatiya Janata Party. Other critics, such as Suchitra Vijayan, Francesca Recchia, and Salil Tripathi, have raised concerns about the worsening human rights situation in India and accused Biden of aligning with Modi’s agenda for his re-election campaign.
In the coming days, Modi is scheduled to address Congress, becoming the only Prime Minister of India to address Congress twice. Thousands of Indian Americans are expected to gather on the South Lawn of the White House to welcome Modi, marking the first time a country-specific diaspora is invited to the White House in such large numbers.
