The Federal Reserve issued an enforcement action against a former employee of the Bank of Jackson Hole who illegally accessed and distributed thousands of confidential pieces of information without authorization.
A former IT manager at the bank, Lindsay Graves, accessed and copied more than 50,000 electronic documents between 2015 and 2019, including confidential supervisory information (CSI), according to the Fed’s consent order. She did so without the bank’s permission or authorization from the Fed, then allegedly shared this data with a former employee and his counsel.
Graves’ actions constituted “violations of law or regulation, unsafe or unsound banking practices, or breaches of fiduciary duty” under the Federal Deposit Insurance Act, the order stated.
The terms of the order may impact her future employment outlook within the financial sector, stipulating that “prior to accepting any position that would cause Graves to become an institution-affiliated party, or upon execution of this order if Graves is currently an institution-affiliated party.”
The Graves case highlighted the importance of maintaining clear legal reporting structures, according to the Fed. When violations occur, institutions must quickly notify the appropriate federal authorities. Failure to manage confidential information properly can not only damage a bank’s reputation but also result in legal penalties under the FDI Act.