Biden urges Congress to hold bank executives accountable after collapses

By Rabia Iclal Turan

WASHINGTON (AA) - US President Joe Biden on Friday urged Congress to action to hold senior bank executives accountable.

“Congress must take action to strengthen the ability of the federal government to hold senior management accountable when their banks fail and enter FDIC ( Federal Deposit Insurance Corporation) receivership,” the White House said in a statement.

“Specifically, when banks fail because of mismanagement and excessive risk taking, it should be easier for regulators to claw back compensation from executives, to impose civil penalties, and to ban executives from working in the banking industry again,” the statement added.

Biden called on the Congress to expand the FDIC’s authority to “claw back compensation” from executives of the “failed” banks, such as Silicon Valley Bank (SVB) and Signature Bank, and to strengthen the FDIC’s authority to bar executives from holding jobs in the banking industry.

He also urged Congress to expand the FDIC’s authority to fine the executives of the collapsed banks.

“The President is eager to work with Congress to strengthen accountability in these three areas – and others that Members of Congress identify,” the White House said, stressing that “no one is above the law.”

The two American banks collapsed in less than a week as the Federal Deposit Insurance Corporation (FDIC) took control of SVB’s and Signature Bank’s assets.​​​​​​​