President Biden Urges Congress to Toughen Penalties for Executives of Failed Banks
President Joe Biden recommended that executives of failed banks should be banned from working in the banking sector again.
The White House released a plan to hold senior management more accountable when their financial institutions collapse and enter Federal Deposit Insurance Corporation (FDIC) receivership. In addition, the administration urged Congress to make it easier for federal regulators to punish bank executives when they engage in mismanagement and take excessive risks.
The announcement on Friday highlighted recent reports that show Silicon Valley Bank CEO Gregory Becker sold about $3 million worth of shares in the entity just days before its failure, citing a Securities and Exchange Commission (SEC) filing….