Senator on banks: This is not 2008

As the U.S. continues to deal with the aftermath of the Silicon Valley Bank collapse, executives at the failed bank are facing growing calls for clawbacks. A clawback is a clause that requires a worker to return money already paid by an employer in the event of fraud or misconduct. According to several reports, days before the chaos ensued, SVB paid its employees annual bonuses, while CEO Greg Becker cashed out over $2 million worth of the bank stocks.

Maryland Senator Chris Van Hollen, a member of the Senate Banking Committee, joined Brad Smith and Julie Hyman to discuss the bank collapse. "It really is important that we find ways to claw back proceeds, because people who are responsible for decisions that collapsed a bank should not be able to make profits or get compensation from that bank," he says. "Certainly not in close proximity to the time that it went under," he adds.
The Senator emphasized that although emergency measures were taken, this move by the government was not a bailout. "This is not 2008, when there was a bailout of the banks. This was a very different response," he says.

Watch the entire interview here.

Key Video Moments

00:00:50: Compensation clawbacks

00:01:20: Importance of clawbacks