The recent House Financial Services subcommittee hearing held to address the collapses of three large banks, Silicon Valley Bank, Signature Bank, and First Republic Bank, was a stark reminder of the lack of accountability for those in charge of these institutions.
Republican Michigan Rep. Bill Huizenga was unimpressed with the responses of the bank executives, noting that only one of the three had “manned up” and taken responsibility for the failure of their bank.
“I’m gonna ask you what I think are two of the most important questions, frankly, I’ll go down the line asking you this. First is whether you take responsibility for the failure of your bank,” Huizenga said.
Former Silicon Valley Bank CEO Greg Becker was the only one who accepted responsibility, noting that “as CEO, I think you have to take responsibility for the ultimate outcome of your institution.” Signature Bank CEO Scott Shay and First Republic Bank CEO Michael Roffler both dodged the question, citing “unforeseeable” circumstances and taking responsibility for their employees.
These responses are indicative of a broken system. Bank executives receive hefty bonuses and salaries yet are not held accountable for their actions. Meanwhile, taxpayers are left to foot the bill for the bailouts.
This lack of accountability is unacceptable and must be addressed. Taxpayers should not have to suffer while bank executives get off scot-free.
“It’s not fair for taxpayers to have to foot the bill for the failures of these big banks,” said Huizenga. “The executives in charge must be held accountable, and that starts with taking responsibility for their mistakes.”
It’s time for bank executives to stop dodging the question and own up to their mistakes. Only then can we begin to build a system that holds them accountable and protects taxpayers.
Maybe if the regulators were focused more on their jobs and less on inclusion sensitivity training this wouldn’t have happened. I don’t know. What do you think?
