II 

115TH CONGRESS 

1ST SESSION S. 265 

To prevent conflicts of interest that stem from executive Government employees receiving bonuses or other compensation arrangements from nongovernment sources, from the revolving door that raises concerns about 

the independence of financial services regulators, and from the revolving 

door that casts aspersions over the awarding of Government contracts 

and other financial benefits. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 1, 2017 

Ms. BALDWIN (for herself, Ms. WARREN, Mr. BLUMENTHAL, Mr. SCHATZ, 

Mr. VAN HOLLEN, and Mr. MERKLEY) introduced the following bill; 

which was read twice and referred to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To prevent conflicts of interest that stem from executive 

Government employees receiving bonuses or other compensation arrangements from nongovernment sources, 

from the revolving door that raises concerns about the 

independence of financial services regulators, and from 

the revolving door that casts aspersions over the awarding of Government contracts and other financial benefits. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Financial Services 

3 Conflict of Interest Act’’. 

4 SEC. 2. RESTRICTIONS ON PRIVATE SECTOR PAYMENT FOR 

5 GOVERNMENT SERVICE. 

6 Section 209 of title 18, United States Code, is 

7 amended— 

8 (1) in subsection (a)— 

9 (A) by striking ‘‘any salary’’ and inserting 

10 ‘‘any bonus or salary’’; and 

11 (B) by striking ‘‘his services’’ and inserting 

12 ‘‘services rendered or to be rendered’’; and 

13 (2) in subsection (b)— 

14 (A) by inserting ‘‘(1)’’ after ‘‘(b)’’; and 

15 (B) by adding at the end the following: 

16 ‘‘(2) For purposes of paragraph (1), a pension, retire17 ment, group life, health or accident insurance, profit-shar18 ing, stock bonus, or other employee welfare or benefit plan 

19 that makes payment of compensation contingent on ac20 cepting a position in the Federal Government shall not 

21 be considered bona fide. 

22 ‘‘(3) For purposes of paragraph (2), compensation in23 cludes a retention award or bonus, severance pay, and any 

24 other payment linked to future service in the Federal Gov25 ernment in any way.’’. 


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1 SEC. 3. REQUIREMENTS RELATING TO SLOWING THE RE2 VOLVING DOOR AMONG FINANCIAL SERVICES 

3 REGULATORS. 

4 (a) IN GENERAL.—The Ethics in Government Act of 

5 1978 (5 U.S.C. App.) is amended by adding at the end 

6 the following: 

7 ‘‘TITLE VI—SPECIAL REQUIRE8 MENTS FOR FINANCIAL SERV9 ICES REGULATORS 

10 ‘‘SEC. 601. DEFINITIONS. 

11 ‘‘(a) IN GENERAL.—In this title, the terms ‘des12 ignated agency ethics official’ and ‘executive branch’ have 

13 the meanings given those terms under section 109. 

14 ‘‘(b) OTHER DEFINITIONS.—In this title: 

15 ‘‘(1) COVERED FINANCIAL SERVICES AGENCY.— 

16 The term ‘covered financial services agency’— 

17 ‘‘(A) means a primary financial regulatory 

18 agency (as defined in section 2 of the Dodd19 Frank Wall Street Reform and Consumer Pro20 tection Act (12 U.S.C. 5301)); and 

21 ‘‘(B) includes— 

22 ‘‘(i) the Board of Governors of the 

23 Federal Reserve System; 

24 ‘‘(ii) the Office of the Comptroller of 

25 the Currency; 


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1 ‘‘(iii) the Federal Deposit Insurance 

2 Corporation; 

3 ‘‘(iv) the National Credit Union Ad4 ministration; 

5 ‘‘(v) the Securities and Exchange 

6 Commission; 

7 ‘‘(vi) the Federal Housing Finance 

8 Agency; 

9 ‘‘(vii) the Bureau of Consumer Finan10 cial Protection; 

11 ‘‘(viii) the Commodity Futures Trad12 ing Commission; 

13 ‘‘(ix) the Department of the Treasury; 

14 ‘‘(x) the National Economic Council; 

15 and 

16 ‘‘(xi) the Council of Economic Advi17 sors. 

18 ‘‘(2) COVERED FINANCIAL SERVICES REGU19 LATOR.—The term ‘covered financial services regu20 lator’ means an officer or employee of a covered fi21 nancial services agency who occupies— 

22 ‘‘(A) a supervisory position classified above 

23 GS–15 of the General Schedule; 

24 ‘‘(B) in the case of a position not under 

25 the General Schedule, a supervisory position for 


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1 which the rate of basic pay is not less than 120 

2 percent of the minimum rate of basic pay for 

3 GS–15 of the General Schedule; or 

4 ‘‘(C) any other supervisory position deter5 mined to be of equal classification by the Direc6 tor. 

7 ‘‘(3) DIRECTOR.—The term ‘Director’ means 

8 the Director of the Office of Government Ethics. 

9 ‘‘(4) FORMER CLIENT.—The term ‘former cli10 ent’— 

11 ‘‘(A) means a person for whom a covered 

12 financial services regulator served personally as 

13 an agent, attorney, or consultant during the 2- 

14 year period ending on the date (after such serv15 ice) on which the covered financial services reg16 ulator begins service in the Federal Govern17 ment; and 

18 ‘‘(B) does not include— 

19 ‘‘(i) instances in which the service 

20 provided was limited to a speech or similar 

21 appearance; or 

22 ‘‘(ii) a client of the former employer 

23 of the covered financial services regulator 

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1 ulator did not personally provide such serv2 ices. 

3 ‘‘(5) FORMER EMPLOYER.—The term ‘former 

4 employer’— 

5 ‘‘(A) means a person for whom a covered 

6 financial services regulator served as an em7 ployee, officer, director, trustee, or general part8 ner during the 2-year period ending on the date 

9 (after such service) on which the covered finan10 cial services regulator begins service in the Fed11 eral Government; and 

12 ‘‘(B) does not include— 

13 ‘‘(i) an entity in the Federal Govern14 ment, including an executive branch agen15 cy; 

16 ‘‘(ii) a State or local government; 

17 ‘‘(iii) the District of Columbia; 

18 ‘‘(iv) an Indian tribe, as defined in 

19 section 4 of the Indian Self-Determination 

20 and Education Assistance Act (25 U.S.C. 

21 5304); or 

22 ‘‘(v) the government of a territory or 

23 possession of the United States. 


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1 ‘‘SEC. 602. CONFLICT OF INTEREST AND ELIGIBILITY 

2 STANDARDS FOR FINANCIAL SERVICES REG3 ULATORS. 

4 ‘‘(a) IN GENERAL.—A covered financial services reg5 ulator shall not make, participate in making, or in any 

6 way attempt to use the official position of the covered fi7 nancial services regulator to influence a particular matter 

8 that provides a direct and substantial pecuniary benefit 

9 for a former employer or former client of the covered fi10 nancial services regulator. 

11 ‘‘(b) RECUSAL.—A covered financial services regu12 lator shall recuse himself or herself from any official ac13 tion that would violate subsection (a). 

14 ‘‘(c) WAIVER.— 

15 ‘‘(1) IN GENERAL.—The head of the covered fi16 nancial services agency employing a covered financial 

17 services regulator, in consultation with the Director, 

18 may grant a written waiver of the restrictions under 

19 subsection (a) if, and to the extent that, the head of 

20 the covered financial services agency certifies in 

21 writing that— 

22 ‘‘(A) the application of the restriction to 

23 the particular matter is inconsistent with the 

24 purposes of the restriction; or 

25 ‘‘(B) it is in the public interest to grant 

26 the waiver. 


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1 ‘‘(2) PUBLICATION.—The Director shall make 

2 each waiver under paragraph (1) publicly available 

3 on the Web site of the Office of Government Ethics. 

4 ‘‘SEC. 603. NEGOTIATING FUTURE PRIVATE SECTOR EM5 PLOYMENT. 

6 ‘‘(a) PROHIBITION.—Except as provided in sub7 section (c), and notwithstanding any other provision of 

8 law, a covered financial services regulator may not partici9 pate in any particular matter which involves, to the knowl10 edge of the covered financial services regulator, an indi11 vidual or entity with whom the covered financial services 

12 regulator is in negotiations of future employment or has 

13 an arrangement concerning prospective employment. 

14 ‘‘(b) DISCLOSURE OF EMPLOYMENT NEGOTIA15 TIONS.— 

16 ‘‘(1) IN GENERAL.—If a covered financial serv17 ices regulator begins any negotiations of future em18 ployment with another person, or an agent or inter19 mediary of another person, or other discussion or 

20 communication with another person, or an agent or 

21 intermediary of another person, mutually conducted 

22 with a view toward reaching an agreement regarding 

23 possible employment of the covered financial services 

24 regulator, the covered financial services regulator 

25 shall notify the designated agency ethics official of 


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1 the covered financial services agency employing the 

2 covered financial services regulator regarding the ne3 gotiations, discussions, or communications. 

4 ‘‘(2) INFORMATION.—A designated agency eth5 ics official receiving notice under paragraph (1), 

6 after consultation with the Director, shall inform the 

7 covered financial services regulator of any potential 

8 conflicts of interest involved in any negotiations, dis9 cussions, or communications with the other person 

10 and the applicable prohibitions. 

11 ‘‘(c) WAIVERS ONLY WHEN EXCEPTIONAL CIR12 CUMSTANCES EXIST.— 

13 ‘‘(1) IN GENERAL.—The head of a covered fi14 nancial services agency may only grant a waiver of 

15 the prohibition under subsection (a) if the head de16 termines that exceptional circumstances exist. 

17 ‘‘(2) REVIEW AND PUBLICATION.—For any 

18 waiver granted under paragraph (1), the Director 

19 shall— 

20 ‘‘(A) review the circumstances relating to 

21 the waiver and the determination that excep22 tional circumstances exist; and 

23 ‘‘(B) make the waiver publicly available on 

24 the Web site of the Office of Government Eth25 ics, which shall include— 


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1 ‘‘(i) the name of the private person or 

2 persons involved in the negotiations or ar3 rangement concerning prospective employ4 ment; and 

5 ‘‘(ii) the date on which the negotia6 tions or arrangements commenced. 

7 ‘‘(d) SCOPE.—For purposes of this section, the term 

8 ‘negotiations of future employment’ is not limited to dis9 cussions of specific terms or conditions of employment in 

10 a specific position. 

11 ‘‘SEC. 604. RECORDKEEPING. 

12 ‘‘The Director shall— 

13 ‘‘(1) receive all employment histories, recusal 

14 and waiver records, and other disclosure records for 

15 covered executive branch officials necessary for mon16 itoring compliance with this title; 

17 ‘‘(2) promulgate rules and regulations, in con18 sultation with the Director of the Office of Per19 sonnel Management and the Attorney General, to 

20 implement this title; 

21 ‘‘(3) provide guidance and assistance where ap22 propriate to facilitate compliance with this title; 

23 ‘‘(4) review and, where necessary, assist des24 ignated agency ethics officials in providing advice to 


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1 covered financial services regulators regarding com2 pliance with this title; and 

3 ‘‘(5) if the Director determines that a violation 

4 of this title may have occurred, and in consultation 

5 with the designated agency ethics official and the 

6 Counsel to the President, refer the compliance case 

7 to the United States Attorney for the District of Co8 lumbia for enforcement action. 

9 ‘‘SEC. 605. PENALTIES AND INJUNCTIONS. 

10 ‘‘(a) CRIMINAL PENALTIES.— 

11 ‘‘(1) IN GENERAL.—Any person who violates 

12 section 602 or 603 shall be fined under title 18, 

13 United States Code, imprisoned for not more than 

14 1 year, or both. 

15 ‘‘(2) WILLFUL VIOLATIONS.—Any person who 

16 willfully violates section 602 or 603 shall be fined 

17 under title 18, United States Code, imprisoned for 

18 not more than 5 years, or both. 

19 ‘‘(b) CIVIL ENFORCEMENT.— 

20 ‘‘(1) IN GENERAL.—The Attorney General may 

21 bring a civil action in an appropriate district court 

22 of the United States against any person who vio23 lates, or whom the Attorney General has reason to 

24 believe is engaging in conduct that violates, section 

25 602 or 603. 


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1 ‘‘(2) CIVIL PENALTY.— 

2 ‘‘(A) IN GENERAL.—Upon proof by a pre3 ponderance of the evidence that a person vio4 lated section 602 or 603, the court shall impose 

5 a civil penalty of not more than the greater 

6 of— 

7 ‘‘(i) $100,000 for each violation; or 

8 ‘‘(ii) the amount of compensation the 

9 person received or was offered for the con10 duct constituting the violation. 

11 ‘‘(B) RULE OF CONSTRUCTION.—A civil 

12 penalty under this subsection shall be in addi13 tion to any other criminal or civil statutory, 

14 common law, or administrative remedy available 

15 to the United States or any other person. 

16 ‘‘(3) INJUNCTIVE RELIEF.— 

17 ‘‘(A) IN GENERAL.—In a civil action 

18 brought under paragraph (1) against a person, 

19 the Attorney General may petition the court for 

20 an order prohibiting the person from engaging 

21 in conduct that violates section 602 or 603. 

22 ‘‘(B) STANDARD.—The court may issue an 

23 order under subparagraph (A) if the court finds 

24 by a preponderance of the evidence that the 


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1 conduct of the person violates section 602 or 

2 603. 

3 ‘‘(C) RULE OF CONSTRUCTION.—The filing 

4 of a petition seeking injunctive relief under this 

5 paragraph shall not preclude any other remedy 

6 that is available by law to the United States or 

7 any other person.’’. 

8 SEC. 4. PROHIBITION OF PROCUREMENT OFFICERS AC9 CEPTING EMPLOYMENT FROM GOVERNMENT 

10 CONTRACTORS. 

11 (a) EXPANSION OF PROHIBITION ON ACCEPTANCE

12 BY FORMER OFFICIALS OF COMPENSATION FROM CON13 TRACTORS.—Section 2104 of title 41, United States Code, 

14 is amended— 

15 (1) in subsection (a)— 

16 (A) in the matter preceding paragraph 

17 (1)— 

18 (i) by striking ‘‘or consultant’’ and in19 serting ‘‘consultant, lawyer, or lobbyist’’; 

20 and 

21 (ii) by striking ‘‘one year’’ and insert22 ing ‘‘2 years’’; and 

23 (B) in paragraph (3), by striking ‘‘person24 ally made for the Federal agency’’ and inserting 


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1 ‘‘participated personally and substantially in’’; 

2 and 

3 (2) by striking subsection (b) and inserting the 

4 following: 

5 ‘‘(b) PROHIBITION ON COMPENSATION FROM AFFILI6 ATES AND SUBCONTRACTORS.—A former official respon7 sible for a Government contract referred to in paragraph 

8 (1), (2), or (3) of subsection (a) may not accept compensa9 tion for 2 years after awarding the contract from any divi10 sion, affiliate, or subcontractor of the contractor.’’. 

11 (b) REQUIREMENT FOR PROCUREMENT OFFICERS

12 TO DISCLOSE JOB OFFERS MADE ON BEHALF OF REL13 ATIVES.—Section 2103(a) of title 41, United States Code, 

14 is amended in the matter preceding paragraph (1) by in15 serting after ‘‘that official’’ the following: ‘‘, or for a rel16 ative (as defined in section 3110 of title 5) of that offi17 cial,’’. 

18 (c) REQUIREMENT ON AWARD OF GOVERNMENT

19 CONTRACTS TO FORMER EMPLOYERS.— 

20 (1) IN GENERAL.—Chapter 21 of title 41, 

21 United States Code, is amended by adding at the 

22 end the following: 


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1 ‘‘§ 2108. Prohibition on involvement by certain 

2 former contractor employees in procure3 ments 

4 ‘‘An employee of the Federal Government may not 

5 be personally and substantially involved with any award 

6 of a contract to, or the administration of a contract award7 ed to, a contractor that is a former employer of the em8 ployee during the 2-year period beginning on the date on 

9 which the employee leaves the employment of the con10 tractor.’’. 

11 (2) TECHNICAL AND CONFORMING AMEND12 MENT.—The table of sections for chapter 21 of title 

13 41, United States Code, is amended by adding at 

14 the end the following: 

‘‘2108. Prohibition on involvement by certain former contractor employees in 

procurements.’’. 

15 (d) REGULATIONS.—The Administrator for Federal 

16 Procurement Policy and the Director of the Office of Man17 agement and Budget shall— 

18 (1) in consultation with the Director of the Of19 fice of Personnel Management and the Counsel to 

20 the President, promulgate regulations to carry out 

21 and ensure the enforcement of chapter 21 of title 

22 41, United States Code, as amended by this section; 

23 and 


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1 (2) in consultation with designated agency eth2 ics officials (as defined under section 601 of the 

3 Ethics in Government Act of 1978 (5 U.S.C. App.), 

4 as added by section 3), monitor compliance with that 

5 chapter by individuals and agencies. 

6 SEC. 5. REVOLVING DOOR RESTRICTIONS ON FINANCIAL 

7 SERVICES REGULATORS MOVING INTO THE 

8 PRIVATE SECTOR. 

9 (a) IN GENERAL.—Section 207 of title 18, United 

10 States Code, is amended— 

11 (1) by redesignating subsections (e) through (l) 

12 as subsections (f) through (m), respectively; and 

13 (2) by inserting after subsection (d) the fol14 lowing: 

15 ‘‘(e) RESTRICTIONS ON EMPLOYMENT FOR FINAN16 CIAL SERVICES REGULATORS.— 

17 ‘‘(1) IN GENERAL.—In addition to the restric18 tions set forth in subsections (a), (b), (c), and (d), 

19 a covered financial services regulator shall not— 

20 ‘‘(A) during the 2-year period beginning on 

21 the date on which his or her employment as a 

22 covered financial services regulator ceases— 

23 ‘‘(i) knowingly act as agent or attor24 ney for, or otherwise represent, any other 

25 person for compensation (except the 


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1 United States) in any formal or informal 

2 appearance before; 

3 ‘‘(ii) with the intent to influence, 

4 make any oral or written communication 

5 on behalf of any other person (except the 

6 United States) to; or 

7 ‘‘(iii) knowingly aid, advise, or assist 

8 in— 

9 ‘‘(I) representing any other per10 son (except the United States) in any 

11 formal or informal appearance before; 

12 or 

13 ‘‘(II) making, with the intent to 

14 influence, any oral or written commu15 nication on behalf of any other person 

16 (except the United States) to, 

17 any court of the United States, or any officer 

18 or employee thereof, in connection with any ju19 dicial or other proceeding, that was actually 

20 pending under his or her official responsibility 

21 as a covered financial services regulator during 

22 the 1-year period ending on the date on which 

23 his or her employment as a covered financial 

24 services regulator ceases or in which he or she 


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1 participated personally and substantially as a 

2 covered financial services regulator; or 

3 ‘‘(B) during the 2-year period beginning on 

4 the date on which his or her employment as a 

5 covered financial services regulator ceases— 

6 ‘‘(i) knowingly act as a lobbyist or 

7 agent for, or otherwise represent, any 

8 other person for compensation (except the 

9 United States) in any formal or informal 

10 appearance before; 

11 ‘‘(ii) with the intent to influence, 

12 make any oral or written communication 

13 or conduct any lobbying activities on behalf 

14 of any other person (except the United 

15 States) to; or 

16 ‘‘(iii) knowingly aid, advise, or assist 

17 in— 

18 ‘‘(I) representing any other per19 son (except the United States) in any 

20 formal or informal appearance before; 

21 or 

22 ‘‘(II) making, with the intent to 

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1 tivities on behalf of any other person 

2 (except the United States) to, 

3 any department or agency of the executive 

4 branch or Congress (including any committee of 

5 Congress), or any officer or employee thereof, 

6 in connection with any matter that is pending 

7 before the department, the agency, or Congress. 

8 ‘‘(2) PENALTY.—Any person who violates para9 graph (1) shall be punished as provided in section 

10 216. 

11 ‘‘(3) DEFINITIONS.—In this subsection— 

12 ‘‘(A) the term ‘covered financial services 

13 regulator’ has the meaning given that term in 

14 section 601 of the Ethics in Government Act of 

15 1978 (5 U.S.C. App.); and 

16 ‘‘(B) the terms ‘lobbying activities’ and 

17 ‘lobbyist’ have the meanings given those terms 

18 in section 3 of the Lobbying Disclosure Act of 

19 1995 (2 U.S.C. 1602).’’. 

20 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

21 (1) Section 103(a) of the Honest Leadership 

22 and Open Government Act of 2007 (2 U.S.C. 

23 4702(a)) is amended by striking ‘‘section 207(e)’’ 

24 each place it appears and inserting ‘‘section 207(f)’’. 


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1 (2) Section 207 of title 18, United States Code, 

2 as amended by subsection (a), is amended— 

3 (A) in subsection (g), as so redesignated, 

4 by striking ‘‘or (e)’’ and inserting ‘‘or (f)’’; 

5 (B) in subsection (j)(1)(B), as so redesig6 nated, by striking ‘‘subsection (f)’’ and insert7 ing ‘‘subsection (g)’’; and 

8 (C) in subsection (k), as so redesignated— 

9 (i) in paragraph (1)(B), by striking 

10 ‘‘(25 U.S.C. 450i(j))’’ and inserting ‘‘(25 

11 U.S.C. 5323(j))’’; 

12 (ii) in paragraph (2), in the matter 

13 preceding subparagraph (A), by striking 

14 ‘‘and (e)’’ and inserting ‘‘(e), and (f)’’; 

15 (iii) in paragraph (4), by striking 

16 ‘‘and (e)’’ and inserting ‘‘(e), and (f)’’; and 

17 (iv) in paragraph (7)— 

18 (I) in subparagraph (A), by strik19 ing ‘‘and (e)’’ and inserting ‘‘(e), and 

20 (f)’’; and 

21 (II) in subparagraph (B)(ii), in 

22 the matter preceding subclause (I), by 

23 striking ‘‘subsections (c), (d), or (e)’’ 

24 and inserting ‘‘subsection (c), (d), (e), 

25 or (f)’’. 


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1 (3) Section 141(b)(4) of the Trade Act of 1974 

2 (19 U.S.C. 2171(b)(4)) is amended by striking ‘‘sec3 tion 207(f)(3)’’ and inserting ‘‘207(g)(3)’’. 

4 (4) Section 7802(b)(3)(B) of the Internal Rev5 enue Code of 1986 is amended by striking ‘‘and (f) 

6 of section 207’’ and inserting ‘‘and (g) of section 

7 207’’. 

8 (5) Section 3105(c) of the USEC Privatization 

9 Act (42 U.S.C. 2297h–3(c)) is amended by striking 

10 ‘‘and (d)’’ and inserting ‘‘and (e)’’. 

11 (6) Section 106(p)(6)(I)(ii) of title 49, United 

12 States Code, is amended by striking ‘‘and (f) of sec13 tion 207’’ and inserting ‘‘and (g) of section 207’’. 

14 SEC. 6. RESTRICTIONS ON FEDERAL EXAMINERS AND SU15 PERVISORS OF FINANCIAL INSTITUTIONS. 

16 (a) IN GENERAL.—Section 10(k) of the Federal De17 posit Insurance Act (12 U.S.C. 1820(k)) is amended— 

18 (1) in the subsection heading— 

19 (A) by striking ‘‘ONE-YEAR’’ and inserting 

20 ‘‘TWO-YEAR’’; and 

21 (B) by striking ‘‘EXAMINERS’’ and insert22 ing ‘‘EXAMINERS AND SUPERVISORS’’; 

23 (2) in paragraph (1)— 

24 (A) by striking subparagraph (B) and in25 serting the following: 


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1 ‘‘(B) served— 

2 ‘‘(i) not less than 2 months during the 

3 final 12 months of the employment of the 

4 person with that agency or entity as the 

5 senior examiner (or a functionally equiva6 lent position) of a depository institution or 

7 depository institution holding company 

8 with continuing, broad responsibility for 

9 the examination (or inspection) of that de10 pository institution or depository institu11 tion holding company on behalf of the rel12 evant agency or Federal reserve bank; or 

13 ‘‘(ii) as a supervisor of the senior ex14 aminer with responsibility for managing 

15 the oversight of not more than 5 deposi16 tory institutions or depository institution 

17 holding companies on behalf of the rel18 evant agency or Federal reserve bank; 

19 and’’; and 

20 (B) in subparagraph (C)— 

21 (i) in the matter preceding clause (i), 

22 by striking ‘‘1 year’’ and inserting ‘‘2 

23 years’’; 

24 (ii) in clause (i)— 


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1 (I) by striking ‘‘other company’’ 

2 and inserting ‘‘other company, firm, 

3 or association’’; and 

4 (II) by striking ‘‘or’’ at the end; 

5 (iii) in clause (ii), by striking the pe6 riod at the end and inserting ‘‘; or’’; and 

7 (iv) by adding at the end the fol8 lowing: 

9 ‘‘(iii) a business entity, firm, or asso10 ciation that represents the depository insti11 tution or depository institution holding 

12 company for compensation.’’; 

13 (3) by redesignating paragraphs (2) through 

14 (6) as paragraphs (3) through (7), respectively; 

15 (4) by inserting after paragraph (1) the fol16 lowing: 

17 ‘‘(2) APPLICATION OF PENALTIES FOR SUPER18 VISORS.—A supervisor of a covered financial services 

19 regulator, or a supervisor of a senior examiner de20 scribed in paragraph (1)(B)(i), shall be subject to 

21 the penalties described in paragraph (7) if the su22 pervisor knowingly accepts compensation during the 

23 2-year period beginning on the date on which the 

24 service of the supervisor is terminated— 

25 ‘‘(A) as— 


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1 ‘‘(i) an employee; 

2 ‘‘(ii) an officer; 

3 ‘‘(iii) a director; or 

4 ‘‘(iv) a consultant; and 

5 ‘‘(B) from— 

6 ‘‘(i) a depository institution; 

7 ‘‘(ii) a depository institution holding 

8 company that is designated by the Finan9 cial Stability Oversight Council as a sys10 temically important financial market utility 

11 under section 804 of the Payment, Clear12 ing, and Settlement Supervision Act of 

13 2010 (12 U.S.C. 5463); or 

14 ‘‘(iii) a business entity, firm, or asso15 ciation that represents an institution de16 scribed in clause (ii) for compensation.’’; 

17 (5) in paragraph (3), as so redesignated— 

18 (A) by redesignating subparagraphs (A) 

19 and (B) as subparagraphs (B) and (C), respec20 tively; and 

21 (B) by inserting before subparagraph (B), 

22 as so redesignated, the following: 

23 ‘‘(A) the term ‘covered financial services 

24 regulator’ has the meaning given the term in 


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1 section 601 of the Ethics in Government Act of 

2 1978 (5 U.S.C. App.);’’; 

3 (6) in paragraph (4), as so redesignated, by 

4 striking ‘‘or other company’’ each place it appears 

5 and inserting ‘‘or other company, firm, or associa6 tion’’; and 

7 (7) in paragraph (7), as so redesignated— 

8 (A) in subparagraph (A)— 

9 (i) in the matter preceding clause (i), 

10 by striking ‘‘other company’’ and inserting 

11 ‘‘other company, firm, or association’’; and 

12 (ii) in clause (i)(I), by striking ‘‘other 

13 company’’ and inserting ‘‘other company, 

14 firm, or association’’; and 

15 (B) in subparagraph (C), by striking ‘‘a 

16 company’’ and inserting ‘‘a company, firm, or 

17 association’’. 

18 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

19 Section 10(k) of the Federal Deposit Insurance Act (12 

20 U.S.C. 1820(k)) is amended— 

21 (1) in paragraph (1), in the matter preceding 

22 subparagraph (A), by striking ‘‘paragraph (6)’’ and 

23 inserting ‘‘paragraph (7)’’; 


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1 (2) in paragraph (5)(A), as so redesignated, by 

2 striking ‘‘paragraph (1)(B)’’ and inserting ‘‘para3 graphs (1)(B) and (2)’’; and 

4 (3) in paragraph (7), as so redesignated— 

5 (A) in subparagraph (A)— 

6 (i) by striking ‘‘subject to paragraph 

7 (1)’’ and inserting ‘‘subject to paragraph 

8 (1) or (2)’’; and 

9 (ii) by striking ‘‘paragraph (1)(C)’’ 

10 and inserting ‘‘paragraph (1)(C) or (2)’’; 

11 and 

12 (B) in subparagraph (C)— 

13 (i) by striking ‘‘person described in 

14 paragraph (1)’’ and inserting ‘‘person de15 scribed in paragraph (1) or (2)’’; and 

16 (ii) by striking ‘‘the functions de17 scribed in paragraph (1)(B)’’ and inserting 

18 ‘‘the functions or duties described in para19 graph (1)(B) or (2)’’. 

20 SEC. 7. SEVERABILITY. 

21 If any provision of this Act or any amendment made 

22 by this Act, or any application of such provision or amend23 ment to any person or circumstance, is held to be uncon24 stitutional, the remainder of the provisions of this Act and 

25 the amendments made by this Act and the application of 


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1 the provision or amendment to any other person or cir2 cumstance shall not be affected. 

Æ 


sradovich on DSK3GMQ082PROD with BILLS