- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-03-31T14:55:00
President Joe Biden on Thursday used his executive powers to urge regulators to reinforce banking regulation in the aftermath of the failures of Silicon Valley Bank (SVB) and Signature Bank.
In a White House fact sheet, Biden called on federal banking agencies to “consider a set of reforms that will reduce the risk of future banking crises.” The recommendations put forward largely reverse changes to banking regulation made during the Trump administration, which aimed to reduce burdens on mid-sized institutions regarding liquidity requirements, stress tests, and more.
Democrats have pointed to these changes as a significant driving factor behind what went wrong to cause SVB’s collapse. Republicans have levied criticism at the actions of the current administration and on the social and climate-related activities of SVB.
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San Francisco-based First Republic Bank was closed by state and federal banking regulators over the weekend, then sold to JPMorgan Chase Bank. The failure is the second largest in U.S. banking history.
The collapse of Silicon Valley Bank highlighted for the Federal Deposit Insurance Corporation some of the impediments to a quick bank sale, including failing to provide rapid access to quality financial data and lists of key employees.
The Failed Bank Executives Clawback Act seeks to require the Federal Deposit Insurance Corporation to claw back five years’ worth of compensation from executives who lead failed banks.
Breaches of the EU’s GDPR can cost companies substantial sums and huge reputational damage. Now some are warning that the implementation of the EU’s AI Act will be just as far-reaching, and could potentially lead to similar numbers of cases.
Any product that uses AI needs to be safety assessed for its entire lifespan under new rules that went into effect recently across the EU. Experts warned companies using AI to tailor products could be classed as “manufacturers” and face the same duty of care as developed.
When lawmakers slam the U.K.’s chief financial regulator as “incompetent,” it not only opens the doors for others to pile criticism on it, but it sparks a debate about how the organization can be improved–or removed.
