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Changing Jobs in Banking? Be Aware (Robert Smith Commentary)

Send Bankers changing jobs from one bank to another is nothing new. The volume of moves may ebb and flow over time, and we have witnessed this in the Arkansas market for years. While risk is inherent in any move, bankers and their new employers are advised to consider a few steps to mitigate legal risks. A recent Federal Reserve lifetime ban on two Wyoming bankers is an alarming reminder of the severity of these risks. Banks routinely impose some limits on departing employees, typically confidentiality or nondisclosure agreements to protect bank trade secrets and proprietary and customer information. Restrictions that completely prohibit an exiting employee from engaging in the banking business are rare in the Arkansas market. Most common are restrictions on management-level employees impacting their ability to solicit customers and other employees.

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