Recently, in response to fraud and scandals, banks such as Wells Fargo forced th
eir executives into confronting their ethical behavior. Executives had to account for their behavior and while some cashed out with hefty bonuses, at least they are no longer with the organization. Ethical foul-ups in the banking industry are, unfortunately, nothing new. Whether we are talking about the faded memory of the S&L crisis or the banking debacles of 2007 – 2008, the image of the staid, steady banker are all too often tarnished.
However, as the following case will demonstrate, sometimes it is not the executive but the unethical behind the counter who have not been ethically screened.
Nathan Michael Newell
The president of the credit union where he worked, said that Newell was “properly vetted.” However, Newell who was an employee of the Freedom Federal Credit Union, has just been charged with robbery, first- and third-degree burglary, first- and second-degree assault and home invasion.
A 78-year-old man, and a customer of the Freedom Federal Credit Union, recently made a large cash withdrawal. Nathan Michael Newell was his teller. According to the police report:
“A 78-year-old man told investigators answered his door around 8:30 p.m. and an unknown male forced his way inside.”
The intruder (Newell) started to assault the man, until a relative intervened. The suspect allegedly fled around the same time the relative ran to the neighbor’s house to call the police. Continued the report:
“As the investigation continued, it was determined one of the victims had removed a large amount of money from the bank. Detectives gained information [from the victim] identifying a teller at the bank as the suspect.”
Newell was arrested shortly after. He is in jail without bond.
Both the victim and the relative received injuries from the assault.
Said Michael MacPherson, president and CEO of Freedom Federal Credit Union:
“We are shocked and appalled to hear of the events that led to the assault and injury of a longtime member of our credit union. Our thoughts go out to him, and his family, during this difficult time.”
While I believe that CEO Michael MacPherson is sincere in his apology, I can go back to my first statement and note that in the case of Wells Fargo, many lower level employees participated in the fraud. While some claimed to have been coerced, coercion requires consent. Ethical training resists such behavior. So, where was it?
All of the Elements
Whether a huge, multi-national bank such as Wells Fargo, or a small credit union such as Freedom Federal, lower-level employees have the same choices to make as do chief executive officers or other “C-level” managers.
While it is true that Newell crossed the line from simple fraud or theft to criminal behavior, he saw an opportunity, he had a need (most probably for cash) and he could have rationalized that need in any number of ways.
Undoubtedly, Newell saw the older customer as an easy mark, and somehow, he rationalized either he wouldn’t be recognized or that he could get in and out without any problems. Again, let’s not call Newell an isolated “bad apple.” While his intention was physical violence, there is great psychological violence when bankers steal savings or open up several accounts unbeknownst to the customers or commit other types of bank fraud.
Yes, Newell passed a vetting process, but so what? Where were the ethical screens and where was the accountability?
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