WASHINGTON, D.C. — The White House today called on bank regulators and lawmakers to undo the Trump administration’s rollback of regulatory protections for large regional banks. In the Biden administration’s announcement, the president further called for buttressing the role bank supervisors play in overseeing banking. Additionally, the Biden administration called for the completion of the executive compensation rule for bank executives authorized under Section 956 of the Dodd-Frank Act.
On Tuesday, Public Citizen called on the leadership of the Senate Banking Committee to investigate and address the role executive compensation structure played in the poor decisions by Silicon Valley Bank’s failure.
Bartlett Naylor, financial policy advocate with Public Citizen, issued the following statement:
“Preventing the next banking collapse absolutely requires a financial regulatory system that is capable of detecting instability and acting to prevent it from spreading. When Trump rolled back banking standards, he put the entirety of our financial system at risk. The clearest, most elegant method of preventing the next SVB crash comes through banker pay reform. Behind all banker misconduct is a paycheck.
“We applaud the president’s actions today and encourage him to promote the overdue reforms that remove banker’s thirst for short-term profits.”
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