This one is really pretty straightforward.
The bank requires a thumbprint before cashing a check for anyone who does not have an account there. Steve Valdez did not have an account, but he also has no thumbs. The bank rejected his offer of two photo IDs instead. He rejected the bank's offer to let him open an account.
The bank has since apologized.
Possibly the strangest thing about this incident is that, so far as I can tell, Mr. Valdez has not sued. At least, not yet.