In response to the recent collapse of Silicon Valley Bank, U.S. Senator Richard Blumenthal (D-CT) has introduced legislation to hold executives of failed banks accountable.
The Deposit Act would prevent the executives of collapsed banks from collecting bonuses and stock profits.
Blumenthal said his legislation would protect taxpayers from bearing the cost of collapsed banks.
“What we've seen is that the failed top leaders have been self-enriching through stock transactions and bonuses as the depositor money disappears into thin air and the banks collapse,” Blumenthal said.
Blumenthal has also asked the Department of Justice to investigate whether officials at Silicon Valley Bank violated criminal or civil law.
