Biden calls on Congress to tighten rules to claw back executive pay, levy penalties in bank failures

President Joe Biden called connected Congress to springiness regulators much authorization to claw backmost wage and penalize executives astatine distressed banks "whose mismanagement contributed to their institutions failing."

"No 1 is supra the instrumentality – and strengthening accountability is an important deterrent to forestall mismanagement successful the future," Biden said successful a connection Friday. "When banks neglect owed to mismanagement and excessive hazard taking, it should beryllium easier for regulators to claw backmost compensation from executives, to enforce civilian penalties, and to prohibition executives from moving successful the banking manufacture again."

Biden noted his powers to clasp executives accountable were constrained by the instrumentality and asked Congress measurement in.

"Congress indispensable enactment to enforce tougher penalties for elder slope executives whose mismanagement contributed to their institutions failing," Biden said.

The nation's apical slope regulators connected Sunday announced the Federal Deposit Insurance Corp. and Federal Reserve would fully screen deposits at some failed banks, Silicon Valley Bank and Signature Bank, and trust connected Wall Street and ample fiscal institutions — not taxpayers — to ft the bill. Signature Bank successful New York, which was shuttered Sunday over akin systemic contagion fears arsenic SVB, had been a fashionable backing root for cryptocurrency companies.

The president stressed the actions taken implicit the play were indispensable to forestall further economical fallout but did not usage payer funds.

"Our banking strategy is much resilient and unchangeable contiguous due to the fact that of the actions we took," Biden said. "On Monday morning, I told the American radical and American businesses that they should consciousness assured that their deposits volition beryllium determination if and erstwhile they request them. That continues to beryllium the case. "