Biden wants tougher penalties for the top executives of the failed banks

US President Joe Biden wants to punish the top executives of failing banks more severely. He is urging Congress to pass tougher measures after the collapse of several regional banks in the US, such as Silicon Valley Bank. This caused great turmoil in the stock markets.

I am determined to hold those responsible for this mess to account. No one is above the law, and increasing accountability is an important way to deter future mismanagement,” Biden said. “Congress must work to impose tougher sanctions on senior executives whose mismanagement contributed to the collapse of their organizations.”

Biden believes that the law is currently too restrictive in holding senior bank executives to account. “If banks fail due to mismanagement and excessive risk taking, it should be easier for the authorities to impose compensation on managers, impose fines and permanently ban managers from working in the financial sector,” said the president.