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#: Biden calls for tougher penalties for executives at failed banks

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“: Biden calls for tougher penalties for executives at failed banks”

President: ‘Congress must act to impose tougher penalties for senior bank executives whose mismanagement contributed to their institutions failing’

President Joe Biden on Friday called for U.S. lawmakers to make it “easier for regulators to claw back compensation from executives, to impose civil penalties, and to ban executives from working in the banking industry again.”

His position comes after regulators in recent days closed down Silicon Valley Bank
SIVB,

and New York’s Signature Bank
SBNY,
-22.87%,
as well as after big banks on Thursday made an unprecedented $30 billion deposit at First Republic Bank.

“Congress must act to impose tougher penalties for senior bank executives whose mismanagement contributed to their institutions failing,” Biden said in a statement released by the White House.

First Republic’s stock
FRC,
-25.45%
was down more than 20% on Friday as investors remained concerned about the bank despite the big infusion of money, and other bank stocks
KBE,
-4.62%
also lost ground.

Now read: Biden says Americans can have confidence that banking system is safe

And see: Banks have borrowed $165 billion from the Fed in past week after SVB failure

Plus: ‘We need to stop this now.’ First Republic support is spreading financial contagion, Ackman says

Victor Reklaitis

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