Biden calls for banking exec clawbacks amid failures
By 
Kyle Brasseur2023-03-20T19:23:00
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.
Related articles
-
News BriefBipartisan bill would empower FDIC to pursue failed bank exec clawbacks
The Failed Bank Executives Clawback Act seeks to require the Federal Deposit Insurance Corporation to claw back five years’ worth of compensation from executives who lead failed banks.
-
News Brief‘Textbook case of mismanagement’: Regs point blame at SVB for collapse
Banking regulators defended their supervisory actions and pledged to find answers as to what went wrong when discussing the factors leading to the failures of Silicon Valley Bank and Signature Bank before the Senate Banking Committee.
-
News BriefFirst Citizens to acquire deposits and loans of failed SVB
The deposits and loans of the failed Silicon Valley Bank have been purchased by First Citizens Bank & Trust, although about $90 billion in securities and other assets will remain in receivership.
More from Regulatory Policy
-
ArticleOCC proposes dropping its ‘recovery plan’ requirements for big banks
Less than a year after a new rule required more of the U.S.’s biggest banks to draft “recovery” plans in case of failure, the rule is on its way out.
-
ArticleNavigate SEC cautiously during shutdown, experts advise
The U.S. government shutdown has brought most operations at the Securities and Exchange Commission (SEC) to a screeching halt, but that doesn’t mean compliance teams should be taking a breather, experts advised.
-
ArticleComplying with the EU Data Act – What companies should know
Companies could face significant compliance challenges in trying to meet new EU legal requirements about how companies share data with third parties.