On Friday, March 17th, US President Joe Biden urged Congress to be “tougher” on big bankers to ensure that “no one is above the law”. Biden’s bid to take action against the big bankers apparently seems to be a damage-control exercise following the collapse of the Silicon Valley Bank.
“Congress must act to impose tougher penalties for senior bank executives whose mismanagement contributed to their institutions’ failure”, Biden said in a statement without naming any top bank officials.
Financial markets in the US and Europe have been volatile following the sudden collapses of Silicon Valley Bank and Signature Bank in the US. The collapse of these two banks, critics of the US economy allege, epitomises the intensification of a sheer economic crisis in the US, which is paving the way to a global recession.
Although the Biden regime promptly responded to prevent the two collapses from spreading further, the White House is sceptical that current measures can prevent any further catastrophe. The Biden regime claims that stricter regulations are required to guarantee long-term stability. However, such a move will be resisted vehemently by most of the Republicans in Congress.
A visibly shaken Biden stated, “I’m firmly committed to accountability for those responsible for this mess. No one is above the law – and strengthening accountability is an important deterrent to prevent mismanagement in the future.”
After Silicon Valley Bank filed for chapter 11 bankruptcy, the White House said, “When banks fail due to mismanagement and excessive risk-taking, it should be easier for regulators to claw back compensation from executives, to impose civil penalties, and to ban executives from working in the banking industry again.” Biden’s regime is at present navigating through one of the most precarious situations that the US economy has fallen into, after the Great Depression of the 1930s and the 2008 Subprime Crisis. Whether the Democrats can bring any reasonable regulations through Congress, facing the Republican opposition is worth a watch now.
