Biden says failed banks’ executives needs to be fined, banned, stripped of compensation By Reuters

© Reuters. U.S. President Joe Biden speaks as he meets with Eire’s Prime Minister (Taoiseach) Leo Varadkar within the Oval Workplace on the White Home in Washington, U.S., March 17, 2023. REUTERS/Evelyn Hockstein

WASHINGTON (Reuters) -U.S. President Joe Biden on Friday known as on Congress to offer regulators larger energy over the banking sector, together with leveraging increased fines, clawing again funds and barring officers from failed banks, in response to an announcement launched by the White Home.

“Nobody is above the regulation,” Biden stated within the assertion, “and strengthening accountability is a crucial deterrent to forestall mismanagement sooner or later.”

The present regulation “limits the administration’s authority to carry executives accountable,” he stated.

Particularly, Biden is asking Congress to offer the Federal Depository Insurance coverage Corp. larger authority to claw again compensation, “together with features from inventory gross sales – from executives at failed banks like Silicon Valley Financial institution and Signature Financial institution (NASDAQ:),” the White Home stated in a second assertion.

The president can be asking Congress to offer the FDIC extra authority to ban financial institution executives from the business when their banks go into receivership, and effective financial institution managers whose banks fail.