In view of the recent banking turmoil, US President Joe Biden is calling for stricter regulation of the sector with consequences for managers – from punishment to reimbursement of remuneration to industry exclusion. He called on Congress in Washington on Friday to give regulators more powers accordingly. “No one is above the law.”
Strengthening accountability is “an important deterrent to prevent mismanagement in the future.” According to the US President, the current legal situation limits the possibilities of holding managers accountable.
According to his office, Biden wants to achieve, among other things, that the deposit insurance fund FDIC can impose penalties on bank managers or exclude them from the industry if their institutions fail. The FDIC will also be given greater powers to reclaim compensation, “including profits from stock sales — from executives of failed banks like Silicon Valley Bank and Signature Bank.”