Biden calls for banking exec clawbacks amid failures

President Joe Biden is calling on Congress to “do more to hold senior bank executives accountable” since the market turmoil that has followed the collapses of Silicon Valley Bank (SVB) and Signature Bank.

The White House published a fact sheet Friday reflecting Biden’s desire to see lawmakers grant regulators, namely the Federal Deposit Insurance Corporation, the power to recoup compensation from senior managers when their banks fail and enter FDIC receivership.

“[W]hen 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 White House said.