Short Sale Question

Just got off the phone with a Short Sale Listing Agent who said "The Chase bank rep told him the file was being transfered to another department because Chase was not aware the seller requesting the short sale was a Chase bank employee".......do you think it can ever been approved?  Wouldn't this situation be considered "not arms length" and a "conflict of interest".....any ideas?  Thankfully, my buyer can wait as long as it takes or until foreclosure..... 

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