FDIC Reminds Banks of Greater Freedom in Choosing New Hires

In the final days of 2022, amendments to the Federal Deposit Insurance Act were signed into law, significantly reshaping restrictions on who may be hired or retained by institutions insured by the Federal Deposit Insurance Corporation (FDIC). The amendments, introduced in the Fair Hiring in Banking Act, end certain prohibitions on hiring or retaining people with a criminal history as well as codify the FDIC’s ability to exempt certain minor offenses entirely. In a guest post for NYU Law’s Compliance & Enforcement blog, our lawyers discuss these amendments, which expand the universe of people who can be hired and retained by insured depository institutions, replacing what was effectively a lifetime ban for many people with more limited, tailored restrictions.

For more information about this Of Special Interest, please contact Matthew Bisanz, Kelly F. Truesdale, Jeffrey P. Taft or Andrew S. Rosenman.

Learn more about our Financial Services Regulatory & Enforcement and Employment Litigation & Counseling practices.