SVB leaders should face financial and legal consequences

  • Senator Elizabeth Warren is asking leaders to face the legal and financial consequences.
  • Silicon Valley and Signature Banks were shut down this week by regulators.
  • Their CEOs made millions, but “we should get it all back,” Warren explained in an op-ed.

Following the closure of Bank of Silicon Valley And Signature Bank this week by regulators aiming to prevent financial collapse, Senator Elizabeth Warren says executives should face legal and monetary consequences for their role in the impending banking crisis.

Banks, argued Warren in an op-ed for The New York Times“suffered from a toxic mix of risky management and weak oversight”, allowing leaders to take advantage of Banking Regulation Rollbacks in the Trump Era to the detriment of depositors who had confidence in the stability of the institution.

Greg Becker, the chief executive of SVB, “received $9.9 million in compensation last year, including a $1.5 million bonus to increase the bank’s profitability – and its risk. Joseph DePaolo of Signature got $8.6 million,” Warren wrote, taking aim at the collapsed banks’ executives. “We should recover all that, as well as the bonuses for the other executives of these banks.”

She added: “If necessary, Congress should empower regulators to claw back salaries and bonuses. Prosecutors and regulators should investigate whether executives have engaged in insider trading or violated other laws. civil or criminal.

Representatives for Warren did not immediately respond to Insider’s request for comment.

Executives from companies ranging from Goldman Sachs to Apple have have taken pay cuts amid the current economic downturn. CEO compensation had increased in recent yearscontribute to a growing economic gap. The Silicon Valley Bank collapse has become the nation’s largest bank failure since the 2008 financial crisis.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top