Elizabeth Warren and other Senate Banking Committee members talk up a measure to study bank CEO pay clawbacks.
U.S. Senators said Tuesday the chief executive officers of Silicon Valley Bank and Signature Bank took risks to boost short-term profits and placed their interests ahead of shareholders and deposit holders in the collapse of the two banks.
Neither bank CEO said they would pay back any compensation at this time, but Becker said he’d cooperate with regulators on any future requirements. Senators focused their criticism on management failures such as Silicon Valley Bank’s decision to sell hedges that would protect its assets from the risk of risking interest rates.
Several also mentioned that the bank operated without a chief risk officer for much of 2022, as well as stock sales conducted by Becker shortly before his bank collapsed. Sen. Van Hollen said Silicon Valley Bank’s stock price fell in 2022 and it sold interest rate hedges at a time when the U.S. Federal Reserve was hiking interest rates.
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