The White House asked lawmakers on Friday to increase penalties for senior bank executives who preside over the collapse of their firms.
Silicon Valley Bank, one of the largest financial institutions in the United States, collapsed last week as depositors rushed to withdraw their funds after the company suffered heavy losses from the liquidation of a long-term bond portfolio. The Federal Deposit Insurance Corporation now directs holdings maintained by Silicon Valley Bank, which California state regulators closed on March 10, as well as Signature Bank in New York, which was closed on Sunday.
The Biden administration asserted that members of Congress should increase federal authority to “hold senior management accountable when their banks fail” or enter into the control of the FDIC. White House officials said that the government-backed corporation should have additional powers to seize executive compensation and benefits, noting that former Silicon Valley Bank CEO Greg Becker sold…
