Section 19 of the Federal Deposit Insurance Act has been in existence since 1950, but the Federal Deposit Insurance Corporation provided codifications for the section in 2020.
Section 19 of the Federal Deposit Insurance Act has been in existence since 1950, but the Federal Deposit Insurance Corporation provided codifications for the section in 2020. The updated regime sets ground rules for the employment of certain categories of persons working for banks and other financial institutions. Unless an FDIC-insured establishment obtains the prior written consent of the agency, its employment of individuals is circumscribed in a number of ways:
Affected employers should seek advice from their legal counsel and coordinate appropriately with any background screening providers. To learn the basics of how to avoid miscues, stay tuned for our next post. You can also read more about individual assessments here and view our webinar.
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FACTOID: When you think of the FDIC, think of the run on the bank in the movie It’s a Wonderful Life. The FDIC was created in 1933 to insure financial institutions precisely to forestall the kind of panic seen during the Great Depression.
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