Biden defends banning bankrupt bank executives – 03/17/2023 – Market

US President Joe Biden called on Congress on Friday to give regulators greater power over the banking sector, including imposing higher fines, recovering funds and banning bank employees from failing banks. according to a statement released by the White House.

“No one is above the law and strengthening accountability is an important factor in preventing future mismanagement,” Biden said in a statement.

Current law “limits the government’s authority to hold executives accountable,” he said.

Specifically, Biden is asking Congress to give the FDIC (Federal Deposit Insurance Fund) greater authority to recover compensation, “including earnings from stock sales, of executives of failed banks such as Silicon Valley Bank and Signature Bank,” Biden said. White House in a second statement.

Biden is also asking Congress to give the FDIC more authority to ban banking executives when their institutions go into receivership and to fine managers whose banks fail.