Business
Banking lobbyists, lawmakers gear up for a fight over new exec pay bill spurred by crisis on August 21, 2023 at 9:00 am Business News | The Hill

Failures in the banking sector that nearly tanked the economy earlier this year resulted in a spate of legislative proposals aimed at punishing executives and reining in the banking sector.
They range from a Bernie Sanders (I-Vt.) plan to prohibit bankers from serving on Federal Reserve boards and acting as their own regulators to one from J.D. Vance (R-Ohio) and other senators diminishing failed bank executives’ enormous levels of pay.
But it is the RECOUP Act, sponsored by Banking Committee chair Sherrod Brown (D-Ohio), that was marked up in the Senate in June and could be the proposal most likely to make it into law, provided the House is interested in the bill as well.
Senators introduce bipartisan bill to allow seizure of pay from CEOs of failed banks
Shorthand for the “Recovering Executive Compensation Obtained from Unaccountable Practices Act,” it would grant the Federal Deposit Insurance Corporation (FDIC) authority to take back compensation for senior executives at banks with $10 billion or more in assets in the event of a failure.
It would also increase “risk management” standards, “ensuring that management does not deviate from sound governance, internal control, or risk management; and ensuring appropriate long-term risk management tailored to long-term economic conditions,” according to the bill.
According to the Federal Reserve, 132 large commercial banks had assets over the $10 billion threshold as of June 30.
Of those, Bank of America, Citigroup, Morgan Stanley, Discover, TD Bank, Santander and Deutsche Bank — or firms lobbying on their behalf — disclosed work on the RECOUP Act during the second quarter, an analysis of federal lobbying disclosures by The Hill found.
A source within Deutsche Bank was unfamiliar with work on the legislation, and Tiber Creek Group, the lobbying firm that disclosed monitoring the bill on their behalf, did not return a request for comment from The Hill.
Gregory Becker, former CEO of Silicon Valley Bank, arrives to testify to a Senate Banking, Housing, and Urban Affairs hearing examining the failures of Silicon Valley Bank and Signature Bank, Tuesday, May 16, 2023, on Capitol Hill in Washington. (AP Photo/Jacquelyn Martin)
Banking industry stays tight-lipped about what it wants
But most banks, accounting firms and industry groups that disclosed lobbying on the bill have not publicly stated their stance on the legislation, due in part to vagueness in the text about what the updated “risk management” and prudential standards actually mean.
These provisions “could include directing senior officers to implement and oversee reporting and information systems,” attorneys with Mayer Brown wrote in an analysis of the legislation.
The Independent Community Bankers Association (ICBA) spent more than $2.3 million last quarter on federal lobbying efforts that include carving out exemptions for smaller banks in the RECOUP Act.
Bank executives blamed for failures during Senate hearing
“ICBA has worked with the congressional offices to include in the bill an exemption for community banks under $10 billion in assets,” the group wrote ahead of the Senate Banking Committee vote.
“ICBA continues working to increase the exemption threshold because, arguing the bill should address large banks with outlier business models, such as the failed Silicon Valley Bank and Signature Bank of New York.”
ICBA declined to comment to The Hill further for this story. Morgan Stanley also declined to comment, and Bank of America, Citigroup, Discover and TD Bank did not return The Hill’s request for comment.
Tiber Creek Group disclosed monitoring the RECOUP Act on behalf of the U.S. Chamber of Commerce, the influential pro-business organization that spent $16.9 million on federal lobbying during the second quarter.
A Chamber spokesperson pointed The Hill to testimony from Tom Quaadman, executive vice president of the Chamber’s Center for Capital Markets Competitiveness, during a Senate Banking Committee hearing in May.
Quaadman told the committee that “clawbacks can be a tool to help disincentivize unsavory corporate behavior” and agreed “financial institutions should avoid excessive risk.”
Lawmakers push major banking reforms following near collapse of financial sector
But he warned cracking down on incentive-based compensation might discourage talented individuals from working in finance at the chief executive and senior executive level.
“It might also chill the kind of healthy risk-taking – lending, financing and investing – that spurs economic growth and job creation in our capitalist system, resulting in corporate stagnation,” Quaadman added.
Other financial industry players told The Hill they are just keeping an eye on the legislation.
Getting tough on bankers ahead of an election
The opportunity to look tough on banks has obvious appeal for lawmakers ahead of the 2024 election, as public opinion rages against bank bailouts and public rescues of private lending institutions.
“[Eighty four] percent of Americans agree – 56 percent agree strongly – that taxpayers should not have to foot the bill for irresponsible bank management, including 85 percent of Democrats and 86 percent of Republicans,” a Reuters Ipsos poll found in March.
Banks would lose $541 billion in ‘hard landing’ contingency: Fed
Bob Menendez (D-N.J.), along with Sens. John Tester (D-Mont.), Chuck Grassley (R-Iowa) and others, have their own piece of executive clawback legislation for failed bank executives.
“Clearly, we need to ensure that poor managers can’t profit when their banks go under,” Sen. Menendez told The Hill in a statement.
“The RECOUP Act updates our laws on executive accountability to ensure that regulators can remove or prohibit senior executives who failed to oversee and manage risks in their banks and claw back their compensation,” he said.
A spokesperson for Tester told The Hill that “bank executives cashing out on their own failures flies in the face of Montana common sense.”
“The Senator’s bipartisan legislation gives federal regulators the tools they need to claw back failed bank executives’ compensation and ban these bad actors from immediately re-entering the financial industry,” the spokesperson said.
Sen. Bob Menendez (D-N.J.) arrives to the Capitol for a series of nomination votes on Thursday, February 16, 2023.
Whether representatives in the House will be interested to take up any of the proposals cooking in the Senate remains to be seen.
The House Financial Services Committee declined to give an update on the status of banking legislation.
The specter of the SVB collapse and the global financial crisis
Actions by executives involved in the banking crisis sparked concerns among the public and legislators that more regulation might be needed.
Those include moves by Greg Becker, the CEO of Silicon Valley Bank, whose bank went under and almost pulled down the entire interconnected banking business, who sold millions of dollars worth of his own stock in the lead up to his bank’s collapse.
Becker, who was permitted to sit on the board of the San Francisco Federal Reserve as his own ostensible regulator, dumped more than $3 million in stock on February 27 amid regulatory warnings.
“You were paying out bonuses until literally hours before regulators seized your assets,” Senate Banking Committee chair Sherrod Brown told Becker in a hearing dedicated to his bank’s failure.
A free market no more? Rules of the game have changed after banking crisis, some say
Becker and his fellow executives were blamed repeatedly for mismanaging their bank, investing in long-term securities whose exchange value was dropping just as the Fed was raising interest rates in response to inflation.
Fed regulators also admitted to a “shift in culture” that changed their supervision work, accepting part of the blame for a situation that raised the ghost of the 2008 financial crisis.
“The underlying issue the House Financial Services Committee has been focused on addressing is the lack of transparency and accountability surrounding bank regulators’ decision-making in crisis situations. The Increasing Financial Regulatory Accountability and Transparency Act, offered by Subcommittee Chairman Andy Barr, would do just that,” Laura Peavey, communications chief for the House Financial Services Committee, told The Hill.
Business, News, banking crisis, FDIC, lobbyists, Silicon Valley Failures in the banking sector that nearly tanked the economy earlier this year resulted in a spate of legislative proposals aimed at punishing executives and reining in the banking sector. They range from a Bernie Sanders (I-Vt.) plan to prohibit bankers from serving on Federal Reserve boards and acting as their own regulators to one…
Business
Google Accused Of Favoring White, Asian Staff As It Reaches $28 Million Deal That Excludes Black Workers

Google has tentatively agreed to a $28 million settlement in a California class‑action lawsuit alleging that white and Asian employees were routinely paid more and placed on faster career tracks than colleagues from other racial and ethnic backgrounds.
- A Santa Clara County Superior Court judge has granted preliminary approval, calling the deal “fair” and noting that it could cover more than 6,600 current and former Google workers employed in the state between 2018 and 2024.

How The Discrimination Claims Emerged
The lawsuit was brought by former Google employee Ana Cantu, who identifies as Mexican and racially Indigenous and worked in people operations and cloud departments for about seven years. Cantu alleges that despite strong performance, she remained stuck at the same level while white and Asian colleagues doing similar work received higher pay, higher “levels,” and more frequent promotions.
Cantu’s complaint claims that Latino, Indigenous, Native American, Native Hawaiian, Pacific Islander, and Alaska Native employees were systematically underpaid compared with white and Asian coworkers performing substantially similar roles. The suit also says employees who raised concerns about pay and leveling saw raises and promotions withheld, reinforcing what plaintiffs describe as a two‑tiered system inside the company.
Why Black Employees Were Left Out
Cantu’s legal team ultimately agreed to narrow the class to employees whose race and ethnicity were “most closely aligned” with hers, a condition that cleared the path to the current settlement.

The judge noted that Black employees were explicitly excluded from the settlement class after negotiations, meaning they will not share in the $28 million payout even though they were named in earlier versions of the case. Separate litigation on behalf of Black Google employees alleging racial bias in pay and promotions remains pending, leaving their claims to be resolved in a different forum.
What The Settlement Provides
Of the $28 million total, about $20.4 million is expected to be distributed to eligible class members after legal fees and penalties are deducted. Eligible workers include those in California who self‑identified as Hispanic, Latinx, Indigenous, Native American, American Indian, Native Hawaiian, Pacific Islander, and/or Alaska Native during the covered period.
Beyond cash payments, Google has also agreed to take steps aimed at addressing the alleged disparities, including reviewing pay and leveling practices for racial and ethnic gaps. The settlement still needs final court approval at a hearing scheduled for later this year, and affected employees will have a chance to opt out or object before any money is distributed.
H2: Google’s Response And The Broader Stakes
A Google spokesperson has said the company disputes the allegations but chose to settle in order to move forward, while reiterating its public commitment to fair pay, hiring, and advancement for all employees. The company has emphasized ongoing internal audits and equity initiatives, though plaintiffs argue those efforts did not prevent or correct the disparities outlined in the lawsuit.
For many observers, the exclusion of Black workers from the settlement highlights the legal and strategic complexities of class‑action discrimination cases, especially in large, diverse workplaces. The outcome of the remaining lawsuit brought on behalf of Black employees, alongside this $28 million deal, will help define how one of the world’s most powerful tech companies is held accountable for alleged racial inequities in pay and promotion.
Business
Luana Lopes Lara: How a 29‑Year‑Old Became the Youngest Self‑Made Woman Billionaire

At just 29, Luana Lopes Lara has taken a title that usually belongs to pop stars and consumer‑app founders.
Multiple business outlets now recognize her as the world’s youngest self‑made woman billionaire, after her company Kalshi hit an 11 billion dollar valuation in a new funding round.
That round, a 1 billion dollar Series E led by Paradigm with Sequoia Capital, Andreessen Horowitz, CapitalG and others participating, instantly pushed both co‑founders into the three‑comma club. Estimates place Luana’s personal stake at roughly 12 percent of Kalshi, valuing her net worth at about 1.3 billion dollars—wealth tied directly to equity she helped create rather than inheritance.

Kalshi itself is a big part of why her ascent matters.
Founded in 2019, the New York–based company runs a federally regulated prediction‑market exchange where users trade yes‑or‑no contracts on real‑world events, from inflation reports to elections and sports outcomes.
As of late 2025, the platform has reached around 50 billion dollars in annualized trading volume, a thousand‑fold jump from roughly 300 million the year before, according to figures cited in TechCrunch and other financial press. That hyper‑growth convinced investors that event contracts are more than a niche curiosity, and it is this conviction—expressed in billions of dollars of new capital—that turned Luana’s share of Kalshi into a billion‑dollar fortune almost overnight.
Her path to that point is unusually demanding even by founder standards. Luana grew up in Brazil and trained at the Bolshoi Theater School’s Brazilian campus, where reports say she spent up to 13 hours a day in class and rehearsal, competing for places in a program that accepts fewer than 3 percent of applicants. After a stint dancing professionally in Austria, she pivoted into academics, enrolling at the Massachusetts Institute of Technology to study computer science and mathematics and later completing a master’s in engineering.
During summers she interned at major firms including Bridgewater Associates and Citadel, gaining a front‑row view of how global macro traders constantly bet on future events—but without a simple, regulated way for ordinary people to do the same.

That realization shaped Kalshi’s founding thesis and ultimately her billionaire status. Together with co‑founder Tarek Mansour, whom she met at MIT, Luana spent years persuading lawyers and U.S. regulators that a fully legal event‑trading exchange could exist under commodities law. Reports say more than 60 law firms turned them down before one agreed to help, and the company then spent roughly three years in licensing discussions with the Commodity Futures Trading Commission before gaining approval. The payoff is visible in 2025’s numbers: an 11‑billion‑dollar valuation, a 1‑billion‑dollar fresh capital injection, and a founder’s stake that makes Luana Lopes Lara not just a compelling story but a data point in how fast wealth can now be created at the intersection of finance, regulation, and software.
Business
Harvard Grads Jobless? How AI & Ghost Jobs Broke Hiring

America’s job market is facing an unprecedented crisis—and nowhere is this more painfully obvious than at Harvard, the world’s gold standard for elite education. A stunning 25% of Harvard’s MBA class of 2025 remains unemployed months after graduation, the highest rate recorded in university history. The Ivy League dream has become a harsh wakeup call, and it’s sending shockwaves across the professional landscape.

Jobless at the Top: Why Graduates Can’t Find Work
For decades, a Harvard diploma was considered a golden ticket. Now, graduates send out hundreds of résumés, often from their parents’ homes, only to get ghosted or auto-rejected by machines. Only 30% of all 2025 graduates nationally have found full-time work in their field, and nearly half feel unprepared for the workforce. “Go to college, get a good job“—that promise is slipping away, even for the smartest and most driven.
Tech’s Iron Grip: ATS and AI Gatekeepers
Applicant tracking systems (ATS) and AI algorithms have become ruthless gatekeepers. If a résumé doesn’t perfectly match the keywords or formatting demanded by the bots, it never reaches human eyes. The age of human connection is gone—now, you’re just a data point to be sorted and discarded.
AI screening has gone beyond basic qualifications. New tools “read” for inferred personality and tone, rejecting candidates for reasons they never see. Worse, up to half of online job listings may be fake—created simply to collect résumés, pad company metrics, or fulfill compliance without ever intending to fill the role.
The Experience Trap: Entry-Level Jobs Require Years
It’s not just Harvard grads who are hurting. Entry-level roles demand years of experience, unpaid internships, and portfolios that resemble a seasoned professional, not a fresh graduate. A bachelor’s degree, once the key to entry, is now just the price of admission. Overqualified candidates compete for underpaid jobs, often just to survive.
One Harvard MBA described applying to 1,000 jobs with no results. Companies, inundated by applications, are now so selective that only those who precisely “game the system” have a shot. This has fundamentally flipped the hiring pyramid: enormous demand for experience, shrinking chances for new entrants, and a brutal gauntlet for anyone not perfectly groomed by internships and coaching.
Burnout Before Day One
The cost is more than financial—mental health and optimism are collapsing among the newest generation of workers. Many come out of elite programs and immediately end up in jobs that don’t require degrees, or take positions far below their qualifications just to pay the bills. There’s a sense of burnout before careers even begin, trapping talent in a cycle of exhaustion, frustration, and disillusionment.
Cultural Collapse: From Relationships to Algorithms
What’s really broken? The culture of hiring itself. Companies have traded trust, mentorship, and relationships for metrics, optimizations, and cost-cutting. Managers no longer hire on potential—they rely on machines, rankings, and personality tests that filter out individuality and reward those who play the algorithmic game best.
AI has automated the very entry-level work that used to build careers—research, drafting, and analysis—and erased the first rung of the professional ladder for thousands of new graduates. The result is a workforce filled with people who know how to pass tests, not necessarily solve problems or drive innovation.
The Ghost Job Phenomenon
Up to half of all listings for entry-level jobs may be “ghost jobs”—positions posted online for optics, compliance, or future needs, but never intended for real hiring. This means millions of job seekers spend hours on applications destined for digital purgatory, further fueling exhaustion and cynicism.
Not Lazy—Just Locked Out
Despite the headlines, the new class of unemployed graduates is not lazy or entitled—they are overqualified, underleveraged, and battered by a broken process. Harvard’s brand means less to AI and ATS systems than the right keyword or résumé format. Human judgment has been sidelined; individuality is filtered out.

What’s Next? Back to Human Connection
Unless companies rediscover the value of human potential, mentorship, and relationships, the job search will remain a brutal numbers game—one that even the “best and brightest” struggle to win. The current system doesn’t just hurt workers—it holds companies back from hiring bold, creative talent who don’t fit perfect digital boxes.
Key Facts:
- 25% of Harvard MBAs unemployed, highest on record
- Only 30% of 2025 grads nationwide have jobs in their field
- Nearly half of grads feel unprepared for real work
- Up to 50% of entry-level listings are “ghost jobs”
- AI and ATS have replaced human judgment at most companies
If you’ve felt this struggle—or see it happening around you—share your story in the comments. And make sure to subscribe for more deep dives on the reality of today’s economy and job market.
This is not just a Harvard problem. It’s a sign that America’s job engine is running on empty, and it’s time to reboot—before another generation is locked out.
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