President Biden Urges Congress to Give Regulators More Power Over Bank Executives
President Biden is putting pressure on bank executives by urging Congress to give regulators more power to reclaim bonuses and stock sale gains if mismanagement causes a bank failure.
The move aims to make it tougher for banking executives to land other jobs in the industry, expand regulators’ ability to fine executives, and ensure that no one is above the law.
This comes after President Biden announced on Monday that the government would make whole those who deposited money at the Silicon Valley Bank and Signature Bank, which collapsed.
He also promised to do whatever is needed to prevent future bank failures.
However, a divided Congress may not pass the president’s proposals.
Republican House Speaker Kevin McCarthy has already stated that he does not see a need for new regulations.
Meanwhile, former top executives at Silicon Valley Bank are facing scrutiny over company bonuses that were paid out hours before the bank was seized by federal regulators.
Former CEO Gregory Becker’s role with groups that actively lobbied to lift regulations put in place after the 2008 banking crisis is also under sharp focus.
Both parties have called for scrutiny on the banking sector itself after the collapse of Silicon Valley Bank.
The House Financial Services Committee has announced that it will hold its first hearing into the failures of both Silicon Valley and Signature Bank later this month.
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