"I'm firmly committed to accountability for those responsible for this mess," Biden said, referring to the recent financial collapses of Silicon Valley Bank (SVB) and Signature Bank.
"No one is above the law—and strengthening accountability is an important deterrent to prevent mismanagement in the future," he added.
"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," the U.S. president stressed.
Through a statement, the White House explained that current laws only grant the Federal Deposit Insurance Corporation (FDIC) a "limited ability to claw back any compensation or gains from share sales that senior executives at Silicon Valley Bank or Signature Bank may have received shortly before their banks entered FDIC receivership."
This statement was made because the SVB "experienced a record bank run last week after a crisis of confidence among investors and depositors," as reported by the Axios outlet, which recalled that "CEO Greg Becker sold US$3.6 million worth of his own stock in the company in late February — an action that the Department of Justice may scrutinize."
While Congress decides to do something to prevent a new financial crisis, Silicon Valley Bank Financial Group filed for bankruptcy on Friday before a New York court to thus attempt a capital restructuring of the businesses seized by the authorities.