The Board of Governors of the Federal Reserve System (FRB)
issued two notable documents over the past two weeks involving
confidential supervisory information (CSI): a cease and desist
order against a former bank employee for improper handling of CSI
and a request for comment on proposed changes to the FRB's
rules governing the disclosure of CSI.
Cease and Desist Order Against Former Bank Employee
First, in a stark reminder to employees in the financial
services industry, the FRB issued a cease and desist order against
a former employee of a nonbank subsidiary of a bank holding company
for violation of its rules relating to confidential supervisory
information.1 Specifically, the order stated that the
former employee, while employed at the company, removed CSI and
other proprietary information from his office without authorization
and in violation of company policy. The specific acts giving rise
to the violation were that the employee sent the CSI to his
personal
