Sen. Warner sponsors legislation to address bank failure

Following the collapse of Silicon Valley Bank U.S. Senator Mark Warner announced that he has co-sponsored legislation to ensure executives of failed banks be held accountable for mismanagement.

Warner a member of the Senate Banking Committee, and the FDIC will act to ensure workers and small businesses will not have to pay the price for banking mismanagement.

In the Silicon Valley banking incident the bank’s CEO Greg Becker sold a reported $3.6 million in Bank stock.

Becker potentially profited off the impending demise of the bank he managed.

At the same time bank employees received bonuses just hours before the government stepped in to close the operation.

The bill that Warner is co-sponsoring will allow the Treasury Department to claw back bonuses and stock profits.

This will ensure that they are held financially responsible and their actions will not burden the consumer or taxpayer.

The Deposit Act will recoup bonuses and profits from stock sales within 60 days of a bank failure.

The bill will impose a 90 percent tax on bonuses of bank executives who make an annual income over $250,000 during the year the bank goes under FDIC acquisition.

This bill will require bank executives forfeit 100 percent of profits they make from recent bank stock trades.

Finally, the bill will direct recouped funds to the FDIC insurance fund so that it can return funds to depositors, workers and small businesses impacted by the failure.

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