President Biden called on Congress to impose tougher penalties for senior bank executives whose mismanagement contributes to the failure of their institutions, alluding to the “mess” left behind by the collapse of Silicon Valley Bank and Signature Bank.
“I’m firmly committed to accountability for those responsible for this mess,” Biden said in a statement. “No one is above the law — and strengthening accountability is an important deterrent to prevent mismanagement in the future.”
Biden asked Congress to expand the FDIC’s authority to enact stronger punishments against executives at such failed banks, including barring them from taking other jobs in the banking industry, imposing fines and taking back their compensation.That compensation should include gains from stock sales, the White House specified later Friday, noting that Silicon Valley Bank CEO Greg Beckerdays before the bank’s collapse.
The White House also noted that, under existing law, the FDIC can only fine bank executives who “recklessly” engage in a pattern of “unsafe or unsound” practices. The federal agency also can only prevent executives from holding jobs at other banks if they engage in “willful or continuing disregard for the safety and soundness” of their bank.
President Donald Trump signed the 2018 bill, sponsored by Sen. Mike Crapo , that scaled down requirements
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