Biden urges Congress to tighten rules for withholding executive salaries, taxing failed banks

Chairperson Joe Biden called on Congress to give regulators more power to withhold wages and penalize executives at troubled banks “whose mismanagement has contributed to their organization’s failure. “

“No one is above the law — and increased accountability is an important deterrent to preventing future mismanagement,” Biden said in a statement Friday. “When banks fail due to mismanagement and excessive risk-taking, it becomes easier for regulators to recover compensation from executives, impose civil penalties and ban banks.” executives work in the banking industry again.”

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Biden noted that his authority to hold executives accountable is limited by law and asked Congress to intervene.

“Congress must act to impose tougher penalties on senior bank executives whose mismanagement contributed to their organization’s failure,” Biden said.

The nation’s top banking regulators on Sunday announced the Federal Deposit Insurance Corporation and the Federal Reserve will Full deposit insurance at both failed banks, Silicon Valley Bank and Signature Bank, and relied on Wall Street and major financial institutions — not taxpayers — pay the bill. Signature Bank in New York, was closed on Sunday because of concerns about a systematic spread similar to that of SVB, which was once a popular source of funding for crypto companies.

The president stressed actions taken over the weekend were necessary to prevent further economic fallout but without using taxpayer money.

“Our banking system is more resilient and stable today because of the actions we’ve taken,” Biden said. “On Monday morning, I told the American people and American businesses that they should feel confident that their deposits will be there if and when they need it. That continues.”