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With Regulators’ Talk of Individual Fines Comes Bankers’ Queries on Insurance
By Kira Zalan and Colby Adams
printAn expected jump in regulatory penalties against individual bankers is motivating more compliance officers to look into obtaining personal liability insurance, with perhaps disappointing results. In congressional testimony and keynote speeches delivered over the past year, federal and state regulators have outlined plans to more frequently fine bank employees who violate rules intended to stem money laundering and other financial crimes. The plans follow criticism that prosecutors have won few convictions of bankers tied to systemic compliance violations. In April, Reuters reported that the U.S. Treasury Department could soon fine former MoneyGram compliance chief Tom Haider as much as $5...
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