President Biden Demands Clawbacks, Civil Penalties, & Industry Bans For Failed-Bank Execs
Never let a crisis go to waste…
Having bailed out all his billionaire donors’ deposits at SVB, President Biden (or some White House aide) has issued a statement demanding tougher penalties for executives of failed banks.
What more perfect target than ‘rich bankers’ for some vilification and placation to his base…
Statement from the President on Holding Senior Bank Executives Accountable (emphasis ours)
This week, we took decisive action to stabilize the banking system without putting taxpayer dollars at risk. That action was necessary to protect jobs and small businesses, and no losses will be borne by the taxpayers.
Our banking system is more resilient and stable today because of the actions we took.
On Monday morning, I told the American people and American businesses that they should feel confident that their deposits will be there if and when they need them. That continues to be the case.
I also said that I’m 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 administration’s 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.
Congress must act to impose tougher penalties for senior bank executives whose mismanagement contributed to their institutions failing.
We are sure Liz Warren will love this.