FDIC Proposes New Rule Codifying Policy on Section 19 Hiring — 2019-11-19

Agency seeks comment to provide greater employment access for individuals with minor criminal offenses WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) today published a proposed rule to formalize a longstanding agency policy related to individuals seeking to work in the banking industry with minor criminal offenses. “Since joining the FDIC, I have heard a number of stories about individuals that committed minor criminal violations when they were young and have been barred from banking,” said FDIC Chairman Jelena McWilliams. “We will always strive to protect the integrity of our banking system, but section 19 should not be a barrier to entry for individuals who have committed minor crimes in the past, paid their debt to society, and reformed their conduct, and are now seeking to gain employment with a financial institution.” Section 19 of the Federal Deposit Insurance Act prohibits, without the prior written consent of the FDIC, any person from participating in banking who