How closely can we regulate the private financial affairs of our staff?

Q: Our Employee Handbook has a section in "Code of Conduct and Conflict of Interest Policy" which addresses Personal Finances. It states: Because of our position of trust in the community, personal finances should be managed with prudence. Personal financial affairs should be conducted in such a manner as to be above regulatory or auditing criticisms or concerns. Therefore, all employees are expected to live within their income and to manage their personal finances so as to avoid embarrassment personally or to the bank. Then it goes on to address overdrafts, etc. My question: What steps can our bank legally take when faced with employees either past due on internal/external accounts, with charge-offs, or even dealing with bankruptcies? – Mona, Ohio