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Consequences of Being Fired From a Bank

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Overview

If poor job performance, tardiness or absence from work contributed to termination, the consequences of being fired from a bank are similar to many jobs: you lose employment and risk using the experience on your resume -- or you must omit it all together. Rely on coworkers who disagreed with your termination, as these people will be valuable references if you lack more job experience to rely on, or do not want a blank space on your resume. Your options are limited if the termination was due to a breach of trust violation of the Federal Deposit Insurance Corporation's Federal Deposit Insurance Act.

Federal Deposit Insurance Act

If poor job performance, tardiness or absence from work contributed to termination, the consequences of being fired from a bank are similar to many jobs: you lose employment and risk using the experience on your resume -- or you must omit it all together. Rely on coworkers who disagreed with your termination, as these people will be valuable references if you lack more job experience to rely on, or do not want a blank space on your resume. Your options are limited if the termination was due to a breach of trust violation of the Federal Deposit Insurance Corporation's Federal Deposit Insurance Act.

Consequences of Firing Due to Breach of Trust

If fired from a bank for a violation of Section 19 of the FDIC's FDIA, you cannot own or manage an FDIC-insured bank; you cannot "become, or continue as, an institution-affiliated party," and you cannot directly or indirectly act in the decision making of an FDIC-insured bank. The FDIC says you cannot participate in the capacity building, higher-up decision-making processes in an FDIC-insured bank. For an FDIC-insured institution, hiring an employee with a breach of trust could result in a $1 million daily fine for each day the employee works there.

An Exception

If an FDIC-insured institution wants to hire a higher-level employee, the institution may petition to the FDIC for an exception to Section 19. A bank would do this primarily for a business candidate of the utmost importance and prestige. Additionally, some institutions will not make applicants aware that they may petition the FDIC on their own behalf to overcome Section 19. The institution must petition the regional FDIC office and the national headquarters for permission to hire in this case.

About the Author

Based in Providence, R.I., Myles Ellison has been writing professionally since 2007. He has published work in the "MCLA Beacon" and "Tourism Review International." In 2010, Ellison began profiling small-business owners while working on a street revitalization project. He graduated from the Massachusetts College of Liberal Arts with a B.A. in interdisciplinary studies, concentrating in English, journalism and anthropology.