Randy: There is not enough context in this question to hardly venture a guess as to what you might be referring too. Can on individual employee be liable for a bank error? Not normally.
Not enough fact presented to know for sure, but maybe the problem is a relationship manager who violated bank policy and waived flood insurance on a R/E secured loan...and then the property flooded and the borrower sustained an uninsured loss. Borrower's suing bank and relationship manager. Bank's trying to lay the blame on the employee who violated policy.