Bankers Blanket Bond

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A bond or insurance policy covering a bank in the event it loses money as the result of employee theft or fraud. Blanket fidelity bonds generally only cover situations in which an employee commits fraud for personal gain; they do not cover situations in which the employee, without support or knowledge of management, falsifies transactions to make the bank appear healthier than it is. Some U.S. states require banks to have blanket bonds. It is a type of blanket fidelity bond.

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