U.S. President Joe Biden called on Congress to severely punish banking executives who failed banks due to mismanagement.

(Bloomberg)

[Financial Channel/Comprehensive Report] After the collapse of Silicon Valley Bank in the United States, the panic of the financial crisis continued to spread. US President Joe Biden (Joe Biden) called on Congress on Friday (17th) to give regulators more power to punish financial institutions due to mismanagement. Executives of failed banks face harsher penalties.

"Reuters" reported that Biden issued a statement on Friday stating that "no one is above the law, and strengthening accountability is an important deterrent against mismanagement," and he also advocated higher fines and confiscation of bank executives. executive pay, prohibiting him from working in banking again.

Please read on...

Currently, the Federal Deposit Insurance Corporation (FDIC) is limited to confiscating executive compensation when large U.S. banks fail, and can only ban them from banking if they have "willful and persistent disregard" for the safe operation of banks.

Democrats, who have been calling for stronger banking regulation, welcomed Biden's announcement, but it was unclear whether it would gain bipartisan support in Congress.

Democratic Senator Elizabeth Warren said that we need to take back their salaries and bonuses, implement real punishment, and ensure that they never work in the banking industry again.

Grasp the pulse of the economy with one hand I subscribe to Free Finance Youtube channel

Already added friends, thank you

Welcome to 【Free Finance】

feel good

Already liked it, thank you.

related news