Washington, March 18 (QNA) – The United States President Joe Biden has called on Congress to tighten regulations to enable “accountability” for executives of failed banks that have been rescued by the government.
In a statement on Friday, Biden said leaders of banks that collapse “due to mismanagement and excessive risk taking” should face fines and bans from working in the industry.
The statement added: I also said that Im firmly committed to accountability for those responsible for this mess. No one is above the law and strengthening accountability is an important deterrent to prevent mismanagement in the future.
The law limits the administrations authority to hold executives responsible. When banks fail due to 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 United States President made the comments after two US financial institutions – Silicon Valley Bank (SVB) and Signature Bank – went bust, raising fears of a broader economic fallout similar to the 2008 financial crisis. (QNA)