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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
How Epstein’s Cash Shaped Artists, Agencies, and Algorithms

Jeffrey Epstein’s money did more than buy private jets and legal leverage. It flowed into the same ecosystem that decides which artists get pushed to the front, which research gets labeled “cutting edge,” and which stories about race and power are treated as respectable debate instead of hate speech. That doesn’t mean he sat in a control room programming playlists. It means his worldview seeped into institutions that already shape what we hear, see, and believe.
The Gatekeepers and Their Stains
The fallout around Casey Wasserman is a vivid example of how this works. Wasserman built a powerhouse talent and marketing agency that controls a major slice of sports, entertainment, and the global touring business. When the Epstein files revealed friendly, flirtatious exchanges between Wasserman and Ghislaine Maxwell, and documented his ties to Epstein’s circle, artists and staff began to question whose money and relationships were quietly underwriting their careers.

That doesn’t prove Epstein “created” any particular star. But it shows that a man deeply entangled with Epstein was sitting at a choke point: deciding which artists get representation, which tours get resources, which festivals and campaigns happen. In an industry built on access and favor, proximity to someone like Epstein is not just gossip; it signals which values are tolerated at the top.
When a gatekeeper with that history sits between artists and the public, “the industry” stops being an abstract machine and starts looking like a web of human choices — choices that, for years, were made in rooms where Epstein’s name wasn’t considered a disqualifier.
Funding Brains, Not Just Brands

Epstein’s interest in culture didn’t end with celebrity selfies. He was obsessed with the science of brains, intelligence, and behavior — and that’s where his money begins to overlap with how audiences are modeled and, eventually, how algorithms are trained.
He cultivated relationships with scientists at elite universities and funded research into genomics, cognition, and brain development. In one high‑profile case, a UCLA professor specializing in music and the brain corresponded with Epstein for years and accepted funding for an institute focused on how music affects neural circuits. On its face, that looks like straightforward philanthropy. Put it next to his email trail and a different pattern appears.
Epstein’s correspondence shows him pushing eugenics and “race science” again and again — arguing that genetic differences explain test score gaps between Black and white people, promoting the idea of editing human beings under the euphemism of “genetic altruism,” and surrounding himself with thinkers who entertained those frames. One researcher in his orbit described Black children as biologically better suited to running and hunting than to abstract thinking.
So you have a financier who is:
- Funding brain and behavior research.
- Deeply invested in ranking human groups by intelligence.
- Embedded in networks that shape both scientific agendas and cultural production.
None of that proves a specific piece of music research turned into a specific Spotify recommendation. But it does show how his ideology was given time, money, and legitimacy in the very spaces that define what counts as serious knowledge about human minds.

How Ideas Leak Into Algorithms
There is another layer that is easier to see: what enters the knowledge base that machines learn from.
Fringe researchers recently misused a large U.S. study of children’s genetics and brain development to publish papers claiming racial hierarchies in IQ and tying Black people’s economic outcomes to supposed genetic deficits. Those papers then showed up as sources in answers from large AI systems when users asked about race and intelligence. Even after mainstream scientists criticized the work, it had already entered both the academic record and the training data of systems that help generate and rank content.
Epstein did not write those specific papers, but he funded the kind of people and projects that keep race‑IQ discourse alive inside elite spaces. Once that thinking is in the mix, recommendation engines and search systems don’t have to be explicitly racist to reproduce it. They simply mirror what’s in their training data and what has been treated as “serious” research.
Zoomed out, the pipeline looks less like a neat conspiracy and more like an ecosystem:
- Wealthy men fund “edgy” work on genes, brains, and behavior.
- Some of that work revives old racist ideas with new data and jargon.
- Those studies get scraped, indexed, and sometimes amplified by AI systems.
- The same platforms host and boost music, video, and news — making decisions shaped by engagement patterns built on biased narratives.
The algorithm deciding what you see next is standing downstream from all of this.
The Celebrity as Smoke Screen
Epstein’s contact lists are full of directors, actors, musicians, authors, and public intellectuals. Many now insist they had no idea what he was doing. Some probably didn’t; others clearly chose not to ask. From Epstein’s perspective, the value of those relationships is obvious.
Being seen in orbit around beloved artists and cultural figures created a reputational firewall. If the public repeatedly saw him photographed with geniuses, Oscar winners, and hit‑makers, their brains filed him under “eccentric patron” rather than “dangerous predator.”
That softens the landing for his ideas, too. Race science sounds less toxic when it’s discussed over dinner at a university‑backed salon or exchanged in emails with a famous thinker.
The more oxygen is spent on the celebrity angle — who flew on which plane, who sat at which dinner — the less attention is left for what may matter more in the long run: the way his money and ideology were welcomed by institutions that shape culture and knowledge.

What to Love, Who to Fear
The point is not to claim that Jeffrey Epstein was secretly programming your TikTok feed or hand‑picking your favorite rapper. The deeper question is what happens when a man with his worldview is allowed to invest in the people and institutions that decide:
- Which artists are “marketable.”
- Which scientific questions are “important.”
- Which studies are “serious” enough to train our machines on.
- Which faces and stories are framed as aspirational — and which as dangerous.
If your media diet feels saturated with certain kinds of Black representation — hyper‑visible in music and sports, under‑represented in positions of uncontested authority — while “objective” science quietly debates Black intelligence, that’s not random drift. It’s the outcome of centuries of narrative work that men like Epstein bought into and helped sustain.
No one can draw a straight, provable line from his bank account to a specific song or recommendation. But the lines he did draw — to elite agencies, to brain and music research, to race‑obsessed science networks — are enough to show this: his money was not only paying for crimes in private. It was also buying him a seat at the tables where culture and knowledge are made, where the stories about who to love and who to fear get quietly agreed upon.

A Challenge to Filmmakers and Creatives
For anyone making culture inside this system, that’s the uncomfortable part: this isn’t just a story about “them.” It’s also a story about you.
Filmmakers, showrunners, musicians, actors, and writers all sit at points where money, narrative, and visibility intersect. You rarely control where the capital ultimately comes from, but you do control what you validate, what you reproduce, and what you challenge.
Questions worth carrying into every room:
- Whose gaze are you serving when you pitch, cast, and cut?
- Which Black characters are being centered — and are they full humans or familiar stereotypes made safe for gatekeepers?
- When someone says a project is “too political,” “too niche,” or “bad for the algorithm,” whose comfort is really being protected?
- Are you treating “the industry” as a neutral force, or as a set of human choices you can push against?
If wealth like Epstein’s can quietly seep into agencies, labs, and institutions that decide what gets made and amplified, then the stories you choose to tell — and refuse to tell — become one of the few levers of resistance inside that machine. You may not control every funding source, but you can decide whether your work reinforces a world where Black people are data points and aesthetics, or one where they are subjects, authors, and owners.
The industry will always have its “gatekeepers.” The open question is whether creatives accept that role as fixed, or start behaving like counter‑programmers: naming the patterns, refusing easy archetypes, and building alternative pathways, platforms, and partnerships wherever possible. In a landscape where money has long been used to decide what to love and who to fear, your choices about whose stories get light are not just artistic decisions. They are acts of power.
Business
New DOJ Files Reveal Naomi Campbell’s Deep Ties to Jeffrey Epstein

In early 2026, the global conversation surrounding the “Epstein files” has reached a fever pitch as the Department of Justice continues to un-redact millions of pages of internal records. Among the most explosive revelations are detailed email exchanges between Ghislaine Maxwell and Jeffrey Epstein that directly name supermodel Naomi Campbell. While Campbell has long maintained she was a peripheral figure in Epstein’s world, the latest documents—including an explicit message where Maxwell allegedly offered “two playmates” for the model—have forced a national re-evaluation of her proximity to the criminal enterprise.

The Logistics of a High-Fashion Connection
The declassified files provide a rare look into the operational relationship between the supermodel and the financier. Flight logs and internal staff emails from as late as 2016 show that Campbell’s travel was frequently subsidized by Epstein’s private fleet. In one exchange, Epstein’s assistants discussed the urgency of her travel requests, noting she had “no backup plan” and was reliant on his jet to reach international events.

This level of logistical coordination suggests a relationship built on significant mutual favors, contrasting with Campbell’s previous descriptions of him as just another face in the crowd.
In Her Own Words: The “Sickened” Response
Campbell has not remained silent as these files have surfaced, though her defense has been consistent for years. In a widely cited 2019 video response that has been recirculated amid the 2026 leaks, she stated, “What he’s done is indefensible. I’m as sickened as everyone else is by it.” When confronted with photos of herself at parties alongside Epstein and Maxwell, she has argued against the concept of “guilt by association,” telling the press:
She has further emphasized her stance by aligning herself with those Epstein harmed, stating,
“I stand with the victims. I’m not a person who wants to see anyone abused, and I never have been.””

The Mystery of the “Two Playmates”
The most damaging piece of evidence in the recent 2026 release is an email where Maxwell reportedly tells Epstein she has “two playmates” ready for Campbell.
While the context of this “offer” remains a subject of intense debate—with some investigators suggesting it refers to the procurement of young women for social or sexual purposes—Campbell’s legal team has historically dismissed such claims as speculative. However, for a public already wary of elite power brokers, the specific wording used in these private DOJ records has created a “stop-the-scroll” moment that is proving difficult for the fashion icon to move past.
A Reputation at a Crossroads
As a trailblazer in the fashion industry, Campbell is now navigating a period where her professional achievements are being weighed against her presence in some of history’s most notorious social circles. The 2026 files don’t just name her; they place her within a broader system where modeling agents and scouts allegedly groomed young women under the guise of high-fashion opportunities. Whether these records prove a deeper complicity or simply illustrate the unavoidable overlap of the 1% remains the central question of the ongoing DOJ investigation.
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.
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