Biden to Congress: Ban execs of failed banks from the industry

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Biden to Congress: Ban execs of failed banks from the industry
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NEW: Biden asks Congress for tougher laws to hold bank execs accountable

President Biden at an event in Monterey Park, Calif., on Tuesday. Photo: Allen J. Schaben / Los Angeles Times via Getty ImagesWhy it matters:and Signature Bank were both taken over by the FDIC in the last week — events that threatened to grow into a larger-scale banking crisis.that sat in plain sight."I'm firmly committed to accountability for those responsible for this mess," Biden said.

"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."to impose tougher penalties for senior bank executives whose mismanagement contributed to their institutions failing," Biden said.

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