Biden Seeks Congressional Approval For FDIC To Fine Executives Of Failed US Banks

President Joe Biden plans to seek approval from Congress to expand the authority of the Federal Deposit Insurance Corporation (FDIC) to fine executives responsible for the failure of the banks under their control, the White House said on Friday

WASHINGTON (UrduPoint News / Sputnik - 17th March, 2023) President Joe Biden plans to seek approval from Congress to expand the authority of the Federal Deposit Insurance Corporation (FDIC) to fine executives responsible for the failure of the banks under their control, the White House said on Friday.

"Under current law, the FDIC may seek monetary penalties from bank executives who 'recklessly' engage in a pattern of 'unsafe or unsound' practices, regardless of whether that bank enters receivership," the White House said in a statement. "To help the agency fully address executive misconduct, Congress should expand the FDIC's authority to seek fines from negligent executives of failed banks when their actions contribute to the failure of their firms."