So maybe weakening the protections of Dodd-Frank and Sarbanes-Oxley was not such a great idea after all.

The Senate Banking Committee considered testimony on legislative options for holding bank executives and regulators accountable following the failures of Silicon Valley Bank and Signature Bank.In remarks at a Senate Banking, Housing, and Urban Affairs Committee hearing,

Committee Chair Sherrod Brown (D-OH) stated that bank executives “cannot operate a bank in a manner where risk management is optional.” He called for legislation that (i) expands banking regulators’ authority to ban or bring action against executives, (ii) expands the FDIC’s authority to clawback compensation, (iii) increases penalties against bad actors and (iv) requires banking regulators to finalize the Dodd-Frank Section 956 rule on incentive-based compensation.

Senate Banking Committee Ranking Member Tim Scott (R-SC) said that while Congress should examine the “lack of accountability” in bank management, he also underscored the importance of holding regulators accountable.

Senate Banking Committee Considers Legislative Fixes to Hold Bank Execs Accountable | Find Know Do