Banking crisis in the United States: Joe Biden asks Congress for a law to punish executives who fail banks

President Joe Biden asked Congress this Friday to pass a law that makes it easier for the US government to

who make the banks they run collapse, a week after the fall of two entities that shook the financial stability of the United States.

In a statement released by the White House, the president calls for the government to be authorized, for example, to rescind bonuses and stock gains collected by executives whose actions cause bank failures.

Biden's request follows a week after the collapse of the

, based in California, and the Signature Bank of New York, two banks focused on the technological niche and on cryptocurrencies, whose leaders did not know how to face the scenario of high rates of the last year, causing their clients to withdraw their deposits en masse and thus collapse.

It also occurs after this Thursday, eleven US banks came to the rescue of the First Republic to avoid its bankruptcy.

Two police officers leave a Silicon Valley bank branch in Santa Clara, California.

Photo: AP Photo/Jeff Chiu

The Biden administration took steps to guarantee deposits, but the president said he would

Biden is also calling on Congress to

for bank executives

in the industry after the failure of the institutions they run.

In another move aimed at deterring risky actions that jeopardize a bank's health, the president wants Congress to expand the Insurance Corporation's ability to

"The law

to hold executives accountable," Biden said.

"When banks fail due to mismanagement and excessive risk-taking, it should be easier for regulators to recover executive compensation, impose civil penalties, and bar executives from ever working in the banking industry again

"

An illustration shows the broken logo of Silicon Valley Bank.

Photo: Reuters

"Congress must act to impose tougher sanctions on top bank executives whose mismanagement contributed to the bankruptcy of their institutions," the president added.

Biden's announcement follows a promise he made Monday outlining steps the government would take to make sure those who deposited money at Silicon Valley Bank and Signature Bank get back on their feet.

He said he wanted executives

for putting banks at risk, rocking the nation's financial system and causing bank shares to fall.

"No one is above the law, and strengthening accountability is a major deterrent to future mismanagement," Biden said.

Currently, the Federal Insurance Corporation can only recover compensation from executives of the nation's largest banks, but other sanctions on executives

for the health of their bank. .

Biden wants Congress to allow the regulator to impose penalties on "negligent" executives, a

legal threshold .

washington correspondent

ap​

look too

3 and a half myths about bank bailouts

Silicon Valley Bank parent company files for bankruptcy