Employment History

I am interviewing for banking jobs, but I am not sure how to address my current employment situation, and I was hoping to get the input of the forum.

I worked for a small boutique investment bank for 3 years, and I left to work with a family firm in the area that offered more opportunities. A few months after starting with the family firm the firm was acquired by a larger group, and I was let go as the acquiring company decided to keep their own people in the merger and let the rest of us go (they gave me a severance so that was nice). My prior employer has offered me contract work, but it isn't full time.

On my resume, should I state that I am working for my previous employer in a contract position, or leave the "contract" part off?

Also, if a potential employer contacts my current employer are they obligated to say that I work there as I am a contract employee?

I know that these are odd questions, but I am just not sure how to navigate these waters. Thanks!

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