Biden Seeks Tougher Penalties On Executives Of Banks That Fail
Biden said laws on the books currently limit the ability to hold executives accountable.
(Bloomberg) -- President Joe Biden urged Congress to approve measures enacting tougher punishments on banking executives whose actions contributed to their institutions failing, following the collapse of regional banks.
“I’m firmly committed to accountability for those responsible for this mess. No one is above the law – and strengthening accountability is an important deterrent to prevent mismanagement in the future,” Biden said in a statement on Friday. “Congress must act to impose tougher penalties for senior bank executives whose mismanagement contributed to their institutions failing.”
Biden said laws on the books currently limit the ability to hold executives accountable.
“When banks fail due to mismanagement and excessive risk taking, it should be easier for regulators to claw back compensation from executives, to impose civil penalties, and to ban executives from working in the banking industry again,” he said.
The failures of Silvergate Capital Corp., Silicon Valley Bank and Signature Bank in recent weeks have raised new concerns about the US financial system, along with concerns about the stability of Credit Suisse Group AG in Europe.
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