President Joe Biden known as on Congress to offer regulators extra authority to claw again pay and penalize executives at distressed banks “whose mismanagement contributed to their establishments failing.”

“Nobody is above the legislation – and strengthening accountability is a vital deterrent to forestall mismanagement sooner or later,” Biden mentioned in an announcement Friday. “When banks fail as a consequence of mismanagement and extreme danger taking, it needs to be simpler for regulators to claw again compensation from executives, to impose civil penalties, and to ban executives from working within the banking business once more.”

Biden famous his powers to carry executives accountable have been constrained by the legislation and requested Congress step in.

“Congress should act to impose more durable penalties for senior financial institution executives whose mismanagement contributed to their establishments failing,” Biden mentioned.

The nation’s high financial institution regulators on Sunday introduced the Federal Deposit Insurance coverage Corp. and Federal Reserve would absolutely cowl deposits at each failed banks, Silicon Valley Financial institution and Signature Financial institution, and depend on Wall Road and enormous monetary establishments — not taxpayers — to foot the invoice. Signature Financial institution in New York, which was shuttered Sunday over related systemic contagion fears as SVB, had been a preferred funding supply for cryptocurrency firms.

The president burdened the actions taken over the weekend have been obligatory to forestall additional financial fallout however didn’t use taxpayer funds.

“Our banking system is extra resilient and secure as we speak due to the actions we took,” Biden mentioned. “On Monday morning, I advised the American individuals and American companies that they need to really feel assured that their deposits shall be there if and once they want them. That continues to be the case. “