Fed cites former AR bank employee for disclosing confidential supervisory info

A former senior credit analyst at Heartland Bank (Little Rock, Ark.) has signed a consent cease-and-desist order with the Federal Reserve that cites him for disclosing confidential supervisory information without authorization and requires him to share the order with any future employer in banking.

The order, announced Thursday by the Fed, says that Gregory White in 2015 gained access to a copy of the bank’s 2015 examination report prepared by the Federal Reserve Bank of St. Louis and the Arkansas State Bank Department. In 2017, it says, White disclosed the report to the press and to other third parties, “along with other confidential supervisory information (‘CSI’) he obtained from Bank personnel.”

The order said White’s misconduct constituted an unsafe or unsound practice and a violation of Fed regulations.

Before accepting any position as an institution-affiliated party, the order says White “shall” provide the institution’s managing director/senior vice president (or equivalent level in the reporting line) with notice and a copy of the order; fully familiarize himself with institution policies and procedures that pertain to his duties and responsibilities, including, but not limited to, those concerning the restrictions on disclosing CSI and/or removing CSI from the premises; and within 10 days after his acceptance of any position or execution of the order, provide written notice to the Fed Board and provide written certification of his compliance with each provision of the order.

If an institution-affiliated party, White “shall,” the order states, fully comply with all applicable laws, rules, regulations, policies, and procedures; not engage in any unsafe or unsound practice; and “fully observe his fiduciary duties.”

Federal Reserve Board issues enforcement action with former employee of Heartland Bank