- “No one is above the law – strengthening accountability is an important deterrent to prevent future mismanagement.”
- Biden noted that his powers to hold executives accountable were limited by law, and asked Congress.
U.S. President Joe Biden delivers remarks at the Boys and Girls Club of the West San Gabriel Valley on March 14, 2023 in Monterey Park, California.
Mario Tama | Good pictures
President Joe Biden called on Congress to give regulators more power to fine and fine executives at troubled banks who “caused their institutions to fail because of mismanagement.”
“No one is above the law — strengthening accountability is an important deterrent to future mismanagement,” Biden said in a statement Friday. “When banks fail due to mismanagement and excessive risk-taking, it should be easier for regulators to recover compensation from executives, impose civil penalties, and ban executives from ever working in the banking industry again.”
Biden noted that his powers to hold executives accountable were limited by law, and asked Congress.
“Congress must act to impose severe penalties on senior bank executives whose mismanagement contributed to the failure of their companies,” Biden said.
The nation’s top bank regulators announced Sunday that the Federal Deposit Insurance Corp. and the Federal Reserve will fully cover deposits at both Silicon Valley Bank and Signature Bank, relying on Wall Street and big financial institutions — not taxpayers. . New York-based Signature Bank, a popular source of funding for cryptocurrency firms, closed on Sunday amid fears of a systemic contagion, similar to SVB.
The president insisted that the measures taken over the weekend were necessary to prevent further economic decline, but did not use taxpayer funds.
“Our banking system is much more resilient and stable today because of the actions we took,” Biden said. “On Monday morning, I told the American people and American businesses that they need to trust that their deposits will be there when they need them. And that continues.”