Biden calls on Congress to tighten laws to claw back executive pay, levy penalties in bank failures

President Joe Biden called on Congress to give regulators more authority to claw back pay and penalize executives at distressed banks “whose mismanagement contributed to their institutions failing.”

“No one is above the law – and strengthening accountability is an important deterrent to prevent mismanagement in the future,” Biden said in a statement Friday, days after federal bank regulators stepped in to guarantee deposits at two banks that failed over the weekend. “When banks fail due to mismanagement and excessive risk taking, it should be easier for regulators to claw back compensation...