Tag Archives: FDIC

Banks Have Special Obligation to Perform Background Checks when Hiring


Written By ESR News Blog Editor Thomas Ahearn

Banks and financial entities have a special obligation to exercise care when hiring due to regulations and the need to maintain a workforce that clients will trust. To help with this task, Attorney Lester Rosen, founder and CEO of Employment Screening Resources (ESR), will present a Greg Souther Bank Webinar titled “Who is Your Bank Hiring: Trends, Legal Developments and Regulatory Obligations for Employment Background Checks” on Tuesday, November 17, 2015 from 2 PM to 4 PM Eastern Time (11AM to 1 PM Pacific Time). Continue reading

FDIC Modifies Statement of Policy for Section 19 of Federal Deposit Insurance Act

In December of 2012, the Federal Deposit Insurance Corporation (FDIC) Board of Directors modified the Statement of Policy (SOP) for Section 19 of the Federal Deposit Insurance (FDI) Act which prohibits a person convicted of a criminal offense involving dishonesty, breach of trust, money laundering, or who has entered into a pretrial diversion program, from working at an FDIC-insured institution without prior written consent of the FDIC. The updated SOP for Section 19 of the FDI Act, which includes modifications the de minimis exceptions regarding the potential fine and the number of days of imprisonment, is available on the FDIC website at http://www.fdic.gov/news/news/financial/2013/fil13003.html. Continue reading

FDIC Grants Waiver to Bank Worker Fired for Putting Cardboard Dime in Washing Machine in 1963

The Des Moines Register reports that a 68-year-old bank worker in Iowa fired by Wells Fargo after a background check found he had been arrested for putting a cardboard dime in a washing machine in 1963 has been cleared to return to work after being granted a waiver by the Federal Deposit Insurance Corporation (FDIC). The full story, an example of the unintended consequences of tightened bank regulations, is available at: http://blogs.desmoinesregister.com/dmr/index.php/2012/10/10/fired-bank-employee-cleared-to-work-again. Continue reading

Bank Worker Fired Under Strict FDIC Guidelines after Background Check Uncovers Minor Crime from 1963

The Des Moines Register reports a 68-year-old man in Iowa was fired from his job as customer service representative at Wells Fargo Home Mortgage after a background check uncovered a nearly half century old minor crime from 1963 listed as “fraud” in which he stuck a cardboard cutout of a dime in a washing machine. The story is the latest about bank workers being fired for minor criminal incidents in their distant pasts under strict new Federal Deposit Insurance Corporation (FDIC) guidelines for banking employment. The article is available here: ‘Wells Fargo fires Des Moines worker for laundromat incident 49 years ago’. Continue reading

News Reports about Bank Firing Employee for 40 Year Old Shoplifting Charge Do Not Tell Entire Story

Recent news reports about how an employee of Wells Fargo in Milwaukee, Wisconsin was fired after a background check uncovered two 40-year-old shoplifting arrests from 1972 when she was 18 do not tell the entire story, according to one safe hiring expert, since there are two avenues that allow applicants and employees with minor offenses to work at banks. A Wells Fargo spokesman said the 58-year-old woman, who worked in customer service in the Home Mortgage department for five years and received numerous recognition awards, was terminated because Federal Deposit Insurance Corporation (FDIC) law prohibits the bank “from hiring or continuing the employment of any person who we know has a criminal record involving dishonesty or breach of trust.” Continue reading