Biden calls for tougher penalties for execs of failed banks

Crisis spurs new worries for a recession


National News

March 17, 2023 - 4:27 PM

President Joe Biden meets with financial regulators earlier this year in Washington, D.C. (Doug Mills/Pool/Getty Images/TNS)

WASHINGTON (AP) — President Joe Biden on Friday called on Congress to allow regulators to impose tougher penalties on the executives of failed banks, including clawing back compensation and making it easier to bar them from working in the industry.

Biden wants the Federal Deposit Insurance Corporation to be able to force the return of compensation paid to executives at a broader range of banks should they fail, and to lower the threshold for the regulator to impose fines and bar executives from working at another bank.

He called on Congress to grant the FDIC those powers after the failures of Silicon Valley Bank and Signature Bank sent shockwaves through the global banking industry.

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