Claw Back Bonuses from Silicon Valley Bank Executives, Tester Urges Regulators
Letter calls on FDIC and Federal Reserve Chairmen to use every tool available to hold bank management accountable;
Sen. Tester: “It is completely unacceptable for executives overseeing a Bank at the time of its failure to compensate themselves on the way out the door”
U.S. Senator Jon Tester today sent a letter to U.S. Federal Deposit Insurance Corporation (FDIC) Chairman Martin J. Gruenberg and Federal Reserve Chairman Jerome H. Powell urging federal financial regulators to hold Silicon Valley Bank (SVB) executives accountable and use every tool at their disposal to claw back reported bonuses received by the Bank’s leadership.
“At a time when Montana families are dealing with rising costs on everything from housing to health care to groceries, we should be focusing on lowering costs for working people, not helping bank executives,” said Tester. “That’s why I’m calling on the FDIC to use every tool at their disposal to claw back reported bonuses given out to the Bank’s leadership. Bank executives cashing out on their own failures is completely unacceptable, and I’ll take on anyone to stop it from happening.”
In his letter, Tester called on the FDIC to investigate former Bank management to hold responsible parties accountable, and so that additional bank failures can be prevented:
“It is clear that bank management made poor decisions and ignored risk factors that ultimately resulted in Silicon Valley Bank’s failure. Regulators and law enforcement, must take steps to investigate the actions of former bank management to hold the responsible parties accountable and ensure similar mistakes are avoided in the future.”
Tester also stressed that it would be completely unacceptable for SVB executives to receive additional compensation in the aftermath of the Bank’s failure and that he would take on anyone to ensure the reported bonuses are withdrawn:
“I also urge your agency to examine the disturbing reports of bonuses being distributed to these same executives as recently as last week. It is completely unacceptable for executives overseeing a Bank at the time of its failure to compensate themselves on the way out the door. I will take on anyone to ensure these bonuses are withdrawn… I stand ready to take action to hold any bank executives accountable for their actions that contributed to this failure.”
You can read the Senator’s full letter HERE.