Biden calls for more power to punish bankruptcy bankers

The president of the United States, Joe Biden, has asked Congress to expand the powers of regulators and the government to hold senior bank executives accountable in the event of bankruptcy of entities, particularly when there has been mismanagement, as announced by this Friday the White House.

According to the US president, “Congress can and should do more to hold senior bank executives accountable” and should take steps to strengthen the federal government’s ability to hold senior management accountable when banks fail and are seized by the Federal Bank of America Corporation. Deposit Insurance (FDIC).

Specifically, when banks fail due to mismanagement and excessive risk-taking, Biden says it should be easier for regulators to recover compensation awarded to executives, impose civil penalties and bar those executives from ever working in the industry again. banking.

Thus, the White House has reported that the President of the United States is asking Congress to expand the authority of the FDIC to recover compensation, including proceeds from the sale of shares, from bankrupt bank executives such as Silicon Valley. Bank (SVB) and Bank Firm.

In addition, Biden wants to strengthen the authority of the FDIC to prohibit executives from returning to work in the banking sector when the entities they ran go into receivership, as well as increase the powers of the FDIC to impose fines on bank executives in bankruptcy.