Biden says Silicon Valley Bank managers will be fired
Two top executives at Silicon Valley Bank have been slapped with a class-action lawsuit over the company’s stunning collapse.
The lawsuit names CEO Greg Becker and CFO Daniel Beck, alleging they knowingly misled stockholders SVB’s ability to navigate risks.
It comes hours after President Joe Biden addressed the nation regarding the SVB collapse, as the US government takes steps to try to prevent an escalating financial crisis.
Mr Biden said that “no losses will be borne by the taxpayers. Instead, the money will come from the fees that banks pay into the Deposit Insurance Fund”.
“The management of these banks will be fired. If the bank is taken over by FDIC, the people running the bank should not work there anymore,” Mr Biden said.
The president said that “investors in the banks will not be protected”.
“They knowingly took a risk. And when the risk didn’t pay off, investors lose their money. That’s how capitalism works,” he added.
“I’m going to ask Congress and the banking regulators to strengthen the rules for banks, to make it less likely this kind of bank failure would happen again.”
