New Federal Deposit Insurance Corp. rules limiting severance payments to executives at troubled banks and thrifts will not be applied retroactively.

The decision means the agency will allow bankers whose contracts already contain so-called golden parachutes to collect the severance payments, even if they exceed limits in the new rules.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.