Federal Register / Vol. 70, No. 221 / Thursday, November 17, 2005 / Rules and Regulations 69633 

1Pub. L. 108–458, 118 Stat. 3638, 3751–53 (Dec. 

17, 2004). 

2For purposes of section 10(k), the term 

‘‘depository institution’’ includes an uninsured 

branch or agency of a foreign bank, if the branch 

or agency is located in a state of the United States. 

See 12 U.S.C. 1820(k)(2)(A). The FDIC has made a 

minor technical change to the definition of 

‘‘depository institution’’ in its regulation to 

recognize that the term may include uninsured 

branches or agencies of foreign banks for these 

purposes. 

3For purposes of the post-employment restriction 

of section 10(k), the term ‘‘depository institution 

holding company’’ means a bank holding company 

or a savings and loan holding company, and also 

includes, among other things, a foreign bank that 

has a branch, agency, or commercial lending 

company subsidiary in the United States. 

(4) The disbursements for allocable 

Federal election activity must be paid 

for either entirely with Federal funds or 

by allocating between Federal funds and 

Levin funds according to 11 CFR 300.33. 

* * * * * 

Dated: November 10, 2005. 

Scott E. Thomas, 

Chairman, Federal Election Commission. 

[FR Doc. 05–22778 Filed 11–16–05; 8:45 am] 

BILLING CODE 6715–01–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Parts 4 and 19 

[Docket No. 05–19] 

RIN 1557–AC94 

FEDERAL RESERVE SYSTEM 

12 CFR Parts 263 and 264a 

[Docket No. R–1230] 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Parts 308 and 336 

RIN 3064–AC92 

DEPARTMENT OF THE TREASURY 

Office of Thrift Supervision 

12 CFR Parts 507 and 509 

[No. 2005–48] 

RIN 1550–AB99 

One-Year Post-Employment 

Restrictions for Senior Examiners 

AGENCIES: Office of the Comptroller of 

the Currency (OCC), Treasury; Board of 

Governors of the Federal Reserve 

System (Board); Federal Deposit 

Insurance Corporation (FDIC); and 

Office of Thrift Supervision (OTS), 

Treasury. 

ACTION: Final rule. 

SUMMARY: The OCC, Board, FDIC and 

OTS (the Agencies) have jointly adopted 

final rules to implement section 6303(b) 

of the Intelligence Reform and 

Terrorism Prevention Act of 2004 

(Intelligence Reform Act), which 

imposes post-employment restrictions 

on senior examiners of depository 

institutions and depository institution 

holding companies. Under section 

6303(b), and the Agencies’ final 

implementing rules, a senior examiner 

employed by an Agency or a Federal 

Reserve Bank (Reserve Bank) may not 

knowingly accept compensation as an 

employee, officer, director, or 

consultant from certain depository 

institutions or depository institution 

holding companies he or she examined, 

or from certain related entities, for one 

year after the examiner leaves the 

employment or service of the Agency or 

Reserve Bank. If an examiner violates 

the one-year restriction, the statute 

requires the appropriate Federal 

banking agency to seek an order of 

removal and prohibition, a civil money 

penalty of up to $250,000, or both. 

Section 10(k) will become effective on 

December 17, 2005. 

DATES: Effective Date: December 17, 

2005. 

FOR FURTHER INFORMATION CONTACT:

OCC: Mitchell Plave, Counsel, 

Legislative and Regulatory Activities 

Division, (202) 874–5090; Stuart 

Feldstein, Assistant Director, Legislative 

and Regulatory Activities Division, 

(202) 874–5090; or Barrett Aldemeyer, 

Senior Counsel, Administrative and 

Internal Law Division, (202) 874–4460, 

Office of the Comptroller of the 

Currency, 250 E Street, SW., 

Washington, DC 20219. 

Board: Cary K. Williams, Assistant 

General Counsel, (202) 452–3295, 

Kieran J. Fallon, Assistant General 

Counsel, (202) 452–5270, Andrea 

Tokheim, Attorney, (202) 452–2300, 

Legal Division; William Spaniel, Deputy 

Associate Director, (202) 452–3469, or 

Jinai Holmes, Senior Financial Analyst, 

(202) 452–2834, Division of Banking 

Supervision and Regulation; for users of 

Telecommunication Devices for the Deaf 

(TDD) only, contact (202) 263–4869. 

FDIC: Robert J. Fagan, Ethics Program 

Manager, Legal Division, (202) 898–

6808; Stephen P. Gaddie, Special 

Assistant to the Deputy Director, 

Division of Supervision and Consumer 

Protection, (202) 898–6575; Richard 

Osterman, Senior Counsel, Legal 

Division, (202) 898–7028; and Kymberly 

K. Copa, Counsel, Legal Division, (202) 

898–8832, Federal Deposit Insurance 

Corporation, 550 17th Street, NW., 

Washington, DC 20429. 

OTS: Elizabeth Moore, Special 

Counsel, Litigation Division, (202) 906–

7039; or Karen Osterloh, Special 

Counsel, Regulations and Legislation 

Division, (202) 906–6639, Chief 

Counsel’s Office, Office of Thrift 

Supervision, 1700 G Street, NW., 

Washington, DC 20552. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Under section 6303(b) of the 

Intelligence Reform Act,1 which added 

a new section 10(k) to the Federal 

Deposit Insurance Act (FDI Act), an 

officer or employee of an Agency or 

Reserve Bank who acts as a ‘‘senior 

examiner’’ for a particular depository 

institution may not, within one year 

after terminating employment with the 

relevant Agency or Reserve Bank, 

knowingly accept compensation as an 

officer, director, employee or consultant 

from that depository institution or any 

company (including a bank holding 

company or savings and loan holding 

company) that controls the depository 

institution.2 Section 10(k) imposes a 

similar post-employment restriction on 

an officer or employee who acts as the 

‘‘senior examiner’’ of a particular 

depository institution holding company, 

but in these circumstances, the postemployment restrictions apply to 

relationships with the depository 

institution holding company and any 

depository institution subsidiary of the 

holding company.3 The restrictions in 

section 10(k) apply only to examiners 

who served as a senior examiner for a 

particular depository institution or 

holding company for two or more 

months during the final twelve months 

of their employment at the Agency or 

Reserve Bank. 

If a senior examiner violates the oneyear post-employment restrictions in 

section 10(k), the statute requires the 

appropriate Federal banking agency to 

initiate proceedings to impose an order 

of removal and prohibition or a civil 

money penalty, or both, on the former 

senior examiner. Congress directed each 

Agency to prescribe regulations to 

administer and carry out section 10(k), 

including rules, regulations or 

guidelines to define the scope of 

persons who are ‘‘senior examiners.’’

The post-employment restrictions in 

section 10(k) are in addition to any 

other conflict of interest and ethics rules 

and restrictions that may apply to 

69634 Federal Register / Vol. 70, No. 221 / Thursday, November 17, 2005 / Rules and Regulations 

4 70 FR 45323 (Aug. 5, 2005). 

5 12 U.S.C. 1820(k)(4)(B). 

6 Id. § 1820(k)(1)(B). 

7The Agencies have modified the proposed rules 

to refer to individuals who have been ‘‘authorized’’

to conduct examinations, rather than 

‘‘commissioned’’ or ‘‘designated’’ to conduct 

examinations, to reflect the fact that some 

individuals authorized to conduct examinations of 

depository institutions or holding companies may 

be credentialed to conduct such examinations, but 

not yet formally be ‘‘commissioned’’ to do so. 

8 150 Cong. Rec. S10356 (daily ed. Oct. 4, 2004) 

(statement of Sen. Levin). 

9See 70 FR 45326–45327 (August 5, 2005). 

examiners under applicable Federal law 

or the internal codes of conduct 

established by an Agency or a Reserve 

Bank. 

II. Proposed Rule and Comments 

Received 

On August 5, 2005, the Agencies 

jointly published proposed rules that 

would implement the post-employment 

restrictions in section 10(k).4 The 

proposed rules defined the term ‘‘senior 

examiner,’’ discussed the types of 

Agency and Federal Reserve examiners 

that would be considered a ‘‘senior 

examiner’’ in light of the examination 

programs of each Agency, addressed the 

nature and scope of the one-year postemployment restriction, and described 

the procedures for seeking penalties on 

senior examiners who violate section 

10(k). 

The Agencies received comments on 

the proposal from a trade association for 

banking institutions and an individual. 

The banking trade association endorsed 

the proposed rule without suggestions 

for change and, in particular, noted that 

the proposed definition of ‘‘senior 

examiner’’ clearly and appropriately 

defined those individuals who would be 

subject to the statutory restriction in 

accordance with Congress’ intent. The 

individual commenter also generally 

supported the proposed rules, but asked 

that the Agencies clarify the rules’

application in certain respects. For 

example, the commenter asked that the 

Agencies clarify whether an examiner 

who performs periodic, short-term 

examinations of a depository institution 

or depository institution holding 

company would be considered a ‘‘senior 

examiner.’’

III. Final Rule 

The Agencies have adopted final rules 

that are substantively identical to the 

proposed rules. The Agencies, however, 

have made minor, technical changes to 

the rules as discussed below. As 

required, the Agencies have consulted 

with each other to assure that the final 

rules are, to the extent possible, 

consistent, comparable and practicable, 

taking into account the differences in 

the supervisory programs utilized by the 

Agencies for the supervision of 

depository institutions and depository 

institution holding companies.5

A. Definition of ‘‘Senior Examiner’’

The post-employment restrictions in 

section 10(k) apply only to an officer or 

employee of an Agency or Reserve Bank 

who serves as the ‘‘senior examiner’’ (or 

in a functionally equivalent position) of 

a particular depository institution or 

depository institution holding company 

and who, in this capacity, has 

‘‘continuing, broad responsibility for the 

examination (or inspection) of that 

depository institution or depository 

institution holding company’’ on behalf 

of the relevant Agency or Reserve 

Bank.6 The final rules, like the proposed 

rules, provide that an officer or 

employee of an Agency or a Reserve 

Bank will be considered the ‘‘senior 

examiner’’ for a particular depository 

institution or depository institution 

holding company if: 

• The individual has been authorized 

by the relevant Agency to conduct 

examinations or inspections on behalf of 

the Agency; 7

• The relevant Agency or Reserve 

Bank has assigned the individual 

continuing, broad, and lead 

responsibility for examining or 

inspecting the depository institution or 

holding company; and 

• The individual’s responsibilities for 

the depository institution or holding 

company represent a substantial portion 

of the individual’s assigned 

responsibilities and require the 

individual to routinely interact with 

officers or employees of the institution, 

holding company, or its affiliates. 

To be considered a ‘‘senior 

examiner,’’ an officer or employee must 

meet each of the criteria listed above. 

Thus, if a substantial portion of an 

examiner’s responsibilities involve 

conducting or leading a targeted 

examination (such as a review of an 

institution’s credit risk management, 

information systems or internal audit 

functions), but the examiner does not 

have broad and lead responsibility for 

the Agency’s or Reserve Bank’s overall 

examination program with respect to the 

institution, the examiner would not be 

considered a ‘‘senior examiner’’ with 

respect to the institution. Such an 

examiner is not likely to develop the 

type and degree of relationship with any 

one institution that the postemployment restriction was designed to 

address. In addition, the final rules 

would not cover an examiner who 

performs only periodic, short-term 

examinations of a depository institution 

or depository institution holding 

company and who does not have 

ongoing, continuing responsibility for 

the institution or holding company. 

Similarly, an examiner who divides his 

or her time across a portfolio of 

depository institutions or holding 

companies, each of which does not 

represent a substantial portion of the 

examiner’s responsibilities, also would 

not be considered a ‘‘senior examiner.’’

To be a ‘‘senior examiner,’’ the 

examiner also must have ‘‘continuing’’

responsibility for the relevant Agency’s 

or Reserve Bank’s supervisory program 

with respect to the particular depository 

institution or depository institution 

holding company. The Agencies believe 

that an examiner would have 

‘‘continuing’’ responsibility for an 

institution or holding company only 

when the examiner’s responsibilities for 

the institution or company were 

expected to continue for a sufficient 

period of time, for example, for at least 

two months, that would enable the 

examiner to develop the type and degree 

of ‘‘meaningful,’’ ‘‘dedicated’’ and 

‘‘sustained’’ relationship with the 

institution or company that the statute 

was designed to address.8

The Agencies believe that the 

definition of ‘‘senior examiner’’

properly applies the post-employment 

restrictions in section 10(k) to those 

examiners who, by reason of their 

position and assigned responsibilities, 

have broad responsibility for a 

depository institution or depository 

institution holding company and are 

expected to devote a substantial amount 

of their time to that institution or 

holding company on a continuing basis. 

Because the titles and roles of 

examiners vary among the Agencies, the 

preamble to the proposed rules 

described the types of examiners that 

each Agency expected would be 

considered a ‘‘senior examiner’’ in light 

of the structure and nature of the 

Agency’s supervisory program.9 The 

trade association commenter found that 

these descriptions were very helpful, 

and the Agencies believe these 

descriptions accurately describe the 

types of examiners that may be 

considered ‘‘senior examiners’’ under 

the Agencies’ current supervisory 

programs. To further help examiners 

comply with the one-year postemployment restrictions, the Agencies 

intend to establish and maintain 

appropriate procedures to notify an 

examiner in writing if the relevant 

Agency believes the examiner’s assigned 

responsibilities would cause the 

Federal Register / Vol. 70, No. 221 / Thursday, November 17, 2005 / Rules and Regulations 69635 

10The Agencies note, however, that a former 

senior examiner may not evade the postemployment restrictions in section 10(k) by 

nominally accepting employment with a company 

not directly covered by the post-employment 

restrictions, but then functionally serve as an 

officer, employee, director, or consultant for a 

depository institution or company that the former 

senior examiner would have been prohibited from 

working for directly. 

11 12 U.S.C. 1820(k)(3). 

12Of course, a former senior examiner who is selfemployed similarly may not accept compensation 

for work performed as a consultant in his or her 

individual capacity for the relevant depository 

institution, depository institution holding company, 

or other company. 

13 Id. § 1820(k)(5). 

14 Id. § 1820(k)(6)(A). If the appropriate Federal 

banking agency does not assess a civil monetary 

penalty against a senior examiner who violates the 

post-employment restrictions in section 10(k), the 

Attorney General of the United States may bring a 

civil action to impose such a penalty against the 

senior examiner. Id. 

15 Id. § 1820(k)(6)(B). 

16The appropriate Agency may consent to a 

change in the application of this restriction as it 

applies to a particular institution or other company, 

as provided in section 8(e)(7)(B) of the FDI Act (12 

U.S.C. 1818(e)(7)(B)). 

examiner to be considered a ‘‘senior 

examiner’’ with respect to any 

depository institution or depository 

institution holding company. 

Nonetheless, the post-employment 

restrictions in section 10(k) and the final 

rules apply directly to senior examiners, 

and examiners are responsible for 

becoming familiar with and ensuring 

their own compliance with the statute. 

Accordingly, examiners who have 

questions concerning whether they may 

be considered a ‘‘senior examiner’’ for 

an institution or holding company are 

encouraged to contact the appropriate 

persons at their respective Agency or 

Reserve Bank. 

B. One-Year Post-Employment 

Restrictions 

If an officer or employee of an Agency 

or a Reserve Bank serves as the senior 

examiner for a depository institution 

during two or more months of the 

individual’s final twelve months of 

employment with the Agency or Reserve 

Bank, section 10(k) prohibits the 

individual from knowingly accepting 

compensation as an employee, officer, 

director, or consultant from the 

depository institution or any company 

that controls the depository institution 

(including a bank holding company or 

savings and loan holding company) for 

one year after leaving the employment 

of the Agency or Reserve Bank. Because 

the prohibition extends to companies 

that control the relevant depository 

institution, it would not prohibit the 

senior examiner from accepting 

employment with a subsidiary or 

affiliate of a bank holding company, 

savings and loan holding company, or 

other company that controls the 

depository institution (other than the 

depository institution for which the 

individual served as a senior 

examiner).10

If an officer or employee serves as the 

senior examiner for a depository 

institution holding company for two or 

more months during the last twelve 

months of his or her employment with 

an Agency or a Reserve Bank, the statute 

and final rule prohibit the individual 

from becoming employed by, or 

otherwise accepting compensation in 

the manner described above, from that 

holding company or any depository 

institution subsidiary of the holding 

company for one year after leaving the 

employment of the Agency or Reserve 

Bank. 

Under section 10(k), a person is 

deemed to be a consultant for purposes 

of the one-year post-employment 

restrictions only if such person ‘‘directly 

works on matters for, or on behalf of,’’

the relevant depository institution, 

depository institution holding company 

or other company.11 The Agencies have 

incorporated this rule of construction 

into the final rules. We interpret this 

provision to mean that a former senior 

examiner who joins a consulting or 

other firm may not, during the twelvemonth post-employment ‘‘cooling-off’’

period, participate in any work that the 

firm is conducting for a depository 

institution or company that the former 

senior examiner would be prohibited 

from doing directly.12 The former senior 

examiner would not, however, violate 

the post-employment restrictions in 

section 10(k) by joining a firm that 

performs work for such an institution or 

company as long as the former senior 

examiner does not personally 

participate in any such work. 

As provided by section 10(k), the 

head of each Agency may waive 

application of the statute’s postemployment restrictions to a senior 

examiner on a case-by-case basis if the 

head of the Agency determines that 

‘‘granting the waiver would not affect 

the integrity of the supervisory program 

of [such Agency].’’ 13 The Agencies 

expect to grant waivers only in special 

circumstances. If an Agency grants a 

waiver to a senior examiner, the postemployment restrictions in section 

10(k), and the associated penalties, 

would not apply to the senior examiner. 

C. Penalties 

If a senior examiner violates the postemployment restrictions in section 

10(k), the statute requires the 

appropriate Agency to seek one of the 

following penalties: 

• An order (1) removing the 

individual from his or her position at, 

or prohibiting the individual from 

further participation in the affairs of, the 

relevant depository institution, 

depository institution holding company, 

or other company for a period of up to 

five years, and (2) prohibiting the 

individual from participating in the 

conduct of the affairs of any insured 

depository institution for a period of up 

to five years; or 

• A civil monetary penalty of not 

more than $250,000.14

An Agency also has the discretion to 

seek both of these penalties. A former 

senior examiner who is subject to a 

removal and prohibition order under 

section 10(k) is also subject to 

paragraphs (6) and (7) of section 8(e) of 

the FDI Act, which pertain to the scope 

of orders prohibiting a person from 

participating in certain banking 

activities.15 These provisions, for 

example, would prohibit a former senior 

examiner, for the duration of a 

prohibition order issued under section 

10(k), from participating in the affairs of 

any bank holding company or 

subsidiary of a bank holding company, 

savings and loan holding company or 

subsidiary of a savings and loan holding 

company, foreign bank that operates a 

branch, agency or commercial lending 

company subsidiary in the United States 

or any subsidiary of such a foreign bank, 

or certain other entities, such as credit 

unions.16 In addition, these provisions 

would prohibit the individual, during 

the term of the prohibition order, from 

accepting employment with any 

appropriate Federal financial 

institutions regulatory agency (as 

defined in 12 U.S.C. 1818(e)(7)(D)), and 

certain other Federal agencies. The 

penalties that may apply to a senior 

examiner under section 10(k) are in 

addition to any other administrative, 

civil, or criminal penalty that may 

apply. 

Under section 10(k), to obtain an 

order of removal or prohibition, an 

Agency must follow the rules and 

procedures that apply in similar types of 

proceedings against depository 

institutions and institution-affiliated 

parties. Specifically, section 10(k) states 

that removal and prohibition 

proceedings must be conducted in 

accordance with section 8(e)(4) of the 

FDI Act, which provides the individual 

the right to an administrative hearing 

prior to final Agency action. Section 

10(k) further provides that an Agency 

seeking to impose a civil monetary 

penalty on a former senior examiner 

must do so either in accordance with 

69636 Federal Register / Vol. 70, No. 221 / Thursday, November 17, 2005 / Rules and Regulations 

17 Id. § 1820(k)(6). 

18See section 6303(d) of the Intelligence Reform 

Act. 

section 8(i) of the FDI Act, which also 

provides the individual the right to an 

administrative hearing prior to final 

Agency action, or through a civil action 

brought in an appropriate United States 

District Court.17

As stated in the preamble to the 

proposal, the Agencies do not believe it 

is necessary to codify these procedures, 

which are adequately set forth in the 

statute. Accordingly, the final rules 

cross-reference the required statutory 

procedures. Proceedings against 

examiners for violations of the postemployment restrictions would take 

place in accordance with the Agencies’

rules of practice and procedure, and the 

Agencies have amended the scope 

sections of their respective Rules of 

Practice and Procedure to reflect this 

fact. 

D. Effective Date 

The Intelligence Reform Act provides 

that the post-employment restrictions 

imposed by section 10(k) shall become 

effective on December 17, 2005.18

Accordingly, section 10(k) and the final 

rules apply only to officers or 

employees of an Agency or Reserve 

Bank who terminate their employment 

with the Agency or Reserve Bank on or 

after December 17, 2005. As explained 

in the proposal, however, because of the 

statute’s twelve-month ‘‘look-back’’

provision, an officer or employee who 

leaves an Agency or a Reserve Bank 

within one year of December 17, 2005, 

may be subject to the post-employment 

restrictions in section 10(k) based on his 

or her examination responsibilities as 

far back as December 17, 2004. 

For example, if an Agency examiner 

terminates his or her employment with 

the relevant Agency on January 1, 2006, 

and the individual, while employed by 

the Agency, served as the ‘‘senior 

examiner’’ for a particular depository 

institution from May 1, 2005 to October 

1, 2005, the individual is subject to the 

post-employment restrictions. Although 

the service that caused the individual to 

be considered a ‘‘senior examiner’’

occurred prior to December 17, 2005, 

such service occurred during the last 

twelve months of the individual’s 

employment with the Agency and, 

accordingly, the examiner may not 

become employed by the relevant 

depository institution, or any company 

that controls the depository institution, 

until January 2, 2007. However, if in the 

foregoing example the examiner 

terminated his or her employment with 

the Agency prior to December 17, 2005 

(the effective date of the statute), the 

employee would not be subject to the 

post-employment restrictions in section 

10(k). 

Regulatory Flexibility Act 

Under section 605(b) of the 

Regulatory Flexibility Act, 5 U.S.C. 

605(b) (RFA), each Agency certifies that 

the final rules will not have a significant 

economic impact on a substantial 

number of small entities. Section 10(k) 

and the final rules impose postemployment restrictions on certain 

senior examiners employed by an 

Agency or a Reserve Bank and do not 

impose any obligations or restrictions 

on banking organizations, including 

small banking organizations. 

Executive Order 12866 

The OCC and OTS have determined 

that this final rulemaking is not a 

significant regulatory action under 

Executive Order 12866. 

Unfunded Mandates Reform Act of 1995 

Under section 202 of the Unfunded 

Mandates Reform Act of 1995, 2 U.S.C. 

1532 (Unfunded Mandates Act), the 

OCC and OTS must prepare a budgetary 

impact statement before promulgating 

any rule likely to result in a Federal 

mandate that may result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any one year. If a budgetary impact 

statement is required, section 205 of the 

Unfunded Mandates Act also requires 

the OCC and OTS to identify and 

consider a reasonable number of 

regulatory alternatives before 

promulgating the rule. The OCC and 

OTS have determined that their 

respective final rules will not result in 

expenditures by state, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any one year. Accordingly, neither 

the OCC nor OTS has prepared a 

budgetary impact statement or 

specifically addressed the regulatory 

alternatives considered. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. Ch. 

3506; 5 CFR 1320 Appendix A.1), the 

Agencies reviewed the final rule. No 

collections of information pursuant to 

the Paperwork Reduction Act are 

contained in the final rule. 

Plain Language 

Section 722 of the Gramm-LeachBliley Act, Public Law 106–102, 113 

Stat. 1338, 1471 (Nov. 12, 1999) requires 

the Federal banking agencies to use 

plain language in all proposed and final 

rules published after January 1, 2000. As 

noted above, commenters generally 

found the proposed rules were clear and 

the final rules are substantively similar 

to the proposed rules. 

List of Subjects 

12 CFR Part 4 

Administrative practice and 

procedure, Availability and release of 

information, Confidential business 

information, Contracting outreach 

program, Freedom of information, 

National banks, Organization and 

functions (government agencies), 

Reporting and recordkeeping 

requirements, Women and minority 

businesses. 

12 CFR Part 19 

Administrative practice and 

procedure, Crime, Equal access to 

justice, Investigation, National banks, 

Penalties, Securities. 

12 CFR Part 263 

Administrative practice and 

procedure, Claims, Crime, Equal access 

to justice, Lawyers, Penalties. 

12 CFR Part 264a 

Conflicts of interest. 

12 CFR Part 308 

Administrative practice and 

procedure, Bank deposit insurance, 

Claims, Crime, Equal access to justice, 

Investigations, Lawyers, Penalties. 

12 CFR Part 336 

Conflict of interests. 

12 CFR Part 507 

Ethics, Governmental employees, OTS 

employees. 

12 CFR Part 509 

Administrative practice and 

procedure, Penalties. 

Department of the Treasury 

Office of the Comptroller of the 

Currency 

12 CFR Chapter I 

Authority and Issuance 

■ For the reasons set forth in the 

preamble, the OCC amends parts 4 and 

19 of title 12 of the Code of Federal 

Regulations as follows: 

■ 1. The title of part 4 is revised to read 

as follows: 

Federal Register / Vol. 70, No. 221 / Thursday, November 17, 2005 / Rules and Regulations 69637 

PART 4—ORGANIZATION AND 

FUNCTIONS, AVAILABILITY AND 

RELEASE OF INFORMATION, 

CONTRACTING OUTREACH 

PROGRAM, POST-EMPLOYMENT 

RESTRICTIONS FOR SENIOR 

EXAMINERS 

■ 2. The authority citation for part 4 is 

revised to read as follows: 

Authority: 12 U.S.C. 93a. Subpart A also 

issued under 5 U.S.C. 552; Subpart B also 

issued under 5 U.S.C. 552; E.O. 12600 (3 CFR 

1987 Comp., p. 235). Subpart C also issued 

under 5 U.S.C. 301, 552; 12 U.S.C. 161, 481, 

482, 484(a), 1442, 1817(a)(3), 1818(u) and (v), 

1820(d)(6), 1820(k), 1821(c), 1821(o), 1821(t), 

1831m, 1831p-1, 1831o, 1867, 1951 et seq., 

2601 et seq., 2801 et seq., 2901 et seq., 3101 

et seq., 3401 et seq.; 15 U.S.C. 77uu(b), 

78q(c)(3); 18 U.S.C. 641, 1905, 1906; 29 

U.S.C. 1204; 31 U.S.C. 9701; 42 U.S.C. 3601; 

44 U.S.C. 3506, 3510. Subpart D also issued 

under 12 U.S.C. 1833e. 

■ 3. A new subpart E is added to part 

4 to read as follows: 

Subpart E—One-Year Restrictions on 

Post-Employment Activities of Senior 

Examiners 

Sec. 

4.72 Scope and purpose. 

4.73 Definitions. 

4.74 One-year post-employment 

restrictions. 

4.75 Effective date; waivers. 

4.76 Penalties. 

§ 4.72 Scope and purpose. 

This subpart describes those OCC 

examiners who are subject to the postemployment restrictions set forth in 

section 10(k) of the Federal Deposit 

Insurance Act (FDI Act) (12 U.S.C. 

1820(k)) and implements those 

restrictions for officers and employees 

of the OCC. 

§ 4.73 Definitions. 

For purposes of this subpart: 

Bank holding company means any 

company that controls a bank (as 

provided in section 2 of the Bank 

Holding Company Act of 1956 (12 

U.S.C. 1841 et seq.)). 

Consultant. For purposes of this 

subpart, a consultant for a national 

bank, bank holding company, or other 

company shall include only an 

individual who works directly on 

matters for, or on behalf of, such bank, 

bank holding company, or other 

company. 

Control has the meaning given in 

section 2 of the Bank Holding Company 

Act (12 U.S.C. 1841(a)). For purposes of 

this subpart, a foreign bank shall be 

deemed to control any branch or agency 

of the foreign bank. 

Depository institution has the 

meaning given in section 3 of the FDI 

Act (12 U.S.C. 1813(c)). For purposes of 

this subpart, a depository institution 

includes an uninsured branch or agency 

of a foreign bank, if such branch or 

agency is located in any State. 

Federal Reserve means the Board of 

Governors of the Federal Reserve 

System and the Federal Reserve Banks. 

Foreign bank means any foreign bank 

or company described in section 8(a) of 

the International Banking Act of 1978 

(12 U.S.C. 3106(a)). 

Insured depository institution has the 

meaning given in section 3 of the FDI 

Act (12 U.S.C. 1813(c)(2)). 

National bank means a national 

banking association or a Federal branch 

or agency of a foreign bank. 

Senior examiner. For purposes of this 

subpart, an officer or employee of the 

OCC is considered to be the ‘‘senior 

examiner’’ for a particular national bank 

if—

(1) The officer or employee has been 

authorized by the OCC to conduct 

examinations on behalf of the OCC; 

(2) The officer or employee has been 

assigned continuing, broad, and lead 

responsibility for examining the 

national bank; and 

(3) The officer’s or employee’s 

responsibilities for examining the 

national bank—

(i) Represent a substantial portion of 

the officer’s or employee’s assigned 

responsibilities; and 

(ii) Require the officer or employee to 

interact routinely with officers or 

employees of the national bank or its 

affiliates. 

§ 4.74 One-year post-employment 

restrictions. 

An officer or employee of the OCC 

who serves as the senior examiner of a 

national bank for two or more months 

during the last twelve months of such 

individual’s employment with the OCC 

may not, within one year after leaving 

the employment of the OCC, knowingly 

accept compensation as an employee, 

officer, director or consultant from the 

national bank, or any company 

(including a bank holding company) 

that controls the national bank. 

§ 4.75 Effective date; waivers. 

The post-employment restrictions set 

forth in section 10(k) of the FDI Act and 

§ 4.74 do not apply to any officer or 

employee of the OCC, or any former 

officer or employee of the OCC, if—

(a) The individual ceased to be an 

officer or employee of the OCC before 

December 17, 2005; or 

(b) The Comptroller of the Currency 

certifies, in writing and on a case-bycase basis, that granting the individual 

a waiver of the restrictions would not 

affect the integrity of the OCC’s 

supervisory program. 

§ 4.76 Penalties. 

(a) Penalties under section 10(k) of 

FDI Act. If a senior examiner of a 

national bank, after leaving the 

employment of the OCC, accepts 

compensation as an employee, officer, 

director, or consultant from that bank, 

or any company (including a bank 

holding company) that controls that 

bank, then the examiner shall, in 

accordance with section 10(k)(6) of the 

FDI Act, be subject to one of the 

following penalties—

(1) An order—

(i) Removing the individual from 

office or prohibiting the individual from 

further participation in the affairs of the 

relevant national bank, bank holding 

company, or other company that 

controls such institution for a period of 

up to five years; and 

(ii) Prohibiting the individual from 

participating in the affairs of any 

insured depository institution for a 

period of up to five years; or 

(2) A civil monetary penalty of not 

more than $250,000. 

(b) Enforcement by appropriate 

Federal banking agency. Violations of 

§ 4.74 shall be administered or enforced 

by the appropriate Federal banking 

agency for the depository institution or 

depository institution holding company 

that provided compensation to the 

former senior examiner. For purposes of 

this paragraph, the appropriate Federal 

banking agency for a company that is 

not a depository institution or 

depository institution holding company 

shall be the Federal banking agency that 

formerly employed the senior examiner. 

(c) Scope of prohibition orders. Any 

senior examiner who is subject to an 

order issued under paragraph (a) of this 

section shall, as required by 12 U.S.C. 

1820(k)(6)(B), be subject to paragraphs 

(6) and (7) of section 8(e) of the FDI Act 

(12 U.S.C. 1818(e)(6)–(7)) in the same 

manner and to the same extent as a 

person subject to an order issued under 

section 8(e). 

(d) Procedures. The procedures 

applicable to actions under paragraph 

(a) of this section are provided in 

section 10(k)(6) of the FDI Act (12 

U.S.C. 1820(k)(6)) and in 12 CFR part 

19. 

(e) Remedies not exclusive. The OCC 

may seek both of the penalties described 

in paragraph (a) of this section. In 

addition, a senior examiner who accepts 

compensation as described in § 4.74 

may be subject to other administrative, 

69638 Federal Register / Vol. 70, No. 221 / Thursday, November 17, 2005 / Rules and Regulations 

civil or criminal remedies or penalties 

as provided in law. 

PART 19—RULES OF PRACTICE AND 

PROCEDURE 

■ 4. The authority citation for part 19 

continues to read as follows: 

Authority: 5 U.S.C. 504, 554–557; 12 

U.S.C. 93(b), 93a, 164, 505, 1817, 1818, 1820, 

1831m, 1831o, 1972, 3102, 3108(a), 3909 and 

4717; 15 U.S.C. 78(h) and (i), 78o–4(c), 78o–

5, 78q–1, 78s, 78u, 78u–2, 78u–3, and 78w; 

28 U.S.C. 2461 note; 31 U.S.C. 330 and 5321; 

and 42 U.S.C. 4012a. 

■ 5. Section 19.1 is amended by 

redesignating paragraph (g) as paragraph 

(h), removing the word ‘‘and’’ at the end 

of the paragraph (f), and adding a new 

paragraph (g) to read as follows: 

§ 19.1 Scope. 

* * * * * 

(g) Removal, prohibition, and civil 

monetary penalty proceedings under 

section 10(k) of the FDI Act (12 U.S.C. 

1820(k)) for violations of the postemployment restrictions imposed by 

that section; and 

* * * * * 

Dated: November 14, 2005. 

John C. Dugan, 

Comptroller of the Currency. 

Board of Governors of the Federal 

Reserve System 

12 CFR Chapter II 

Authority and Issuance 

■ For the reasons set forth in the 

preamble, the Board is amending part 

263 and adding a new part 264a to Title 

12, Chapter II, of the Code of Federal 

Regulations as follows: 

PART 263—RULES OF PRACTICE FOR 

HEARINGS 

■ 1. The authority citation for part 263 

continues to read as follows: 

Authority: 5 U.S.C. 504; 12 U.S.C. 248, 

324, 504, 505, 1817(j), 1818, 1828(c), 1831o, 

1831p–1, 1847(b), 1847(d), 1884(b), 

1972(2)(F), 3105, 3107, 3108, 3907, 3909; 15 

U.S.C. 21, 78o–4, 78o–5, 78u–2; and 28 

U.S.C. 2461 note. 

■ 2. Section 263.1 is amended by 

redesignating paragraph (g) as paragraph 

(h), removing the word ‘‘and’’ at the end 

of the paragraph (f), and adding new 

paragraph (g) to read as follows: 

§ 263.1 Scope. 

* * * * * 

(g) Removal, prohibition, and civil 

monetary penalty proceedings under 

section 10(k) of the FDI Act (12 U.S.C. 

1820(k)) for violations of the special 

post-employment restrictions imposed 

by that section; and 

* * * * * 

■ 3. New part 264a is added to read as 

follows: 

PART 264a—POST-EMPLOYMENT 

RESTRICTIONS FOR SENIOR 

EXAMINERS 

Sec. 

264a.1 What is the purpose and scope of 

this part? 

264a.2 Who is considered a senior 

examiner of the Federal Reserve? 

264a.3 What special post-employment 

restrictions apply to senior examiners? 

264a.4 When do these special restrictions 

become effective and may they be 

waived? 

264a.5 What are the penalties for violating 

these special post-employment 

restrictions? 

264a.6 What other definitions and rules of 

construction apply for purposes of this 

part? 

Authority: 12 U.S.C. 1820(k). 

§ 264a.1 What is the purpose and scope of 

this part? 

This part identifies those officers and 

employees of the Federal Reserve that 

are subject to the special postemployment restrictions set forth in 

section 10(k) of the Federal Deposit 

Insurance Act (FDI Act) and implements 

those restrictions as they apply to 

officers and employees of the Federal 

Reserve. 

§ 264a.2 Who is considered a senior 

examiner of the Federal Reserve? 

For purposes of this part, an officer or 

employee of the Federal Reserve is 

considered to be the ‘‘senior examiner’’

for a particular state member bank, bank 

holding company or foreign bank if—

(a) The officer or employee has been 

authorized by the Board to conduct 

examinations or inspections on behalf of 

the Board; 

(b) The officer or employee has been 

assigned continuing, broad and lead 

responsibility for examining or 

inspecting the state member bank, bank 

holding company or foreign bank; and 

(c) The officer’s or employee’s 

responsibilities for examining, 

inspecting and supervising the state 

member bank, bank holding company or 

foreign bank—

(1) Represent a substantial portion of 

the officer’s or employee’s assigned 

responsibilities; and 

(2) Require the officer or employee to 

interact routinely with officers or 

employees of the state member bank, 

bank holding company or foreign bank 

or its affiliates. 

§ 264a.3 What special post-employment 

restrictions apply to senior examiners? 

(a) Senior Examiners of State Member 

Banks. An officer or employee of the 

Federal Reserve who serves as the 

senior examiner of a state member bank 

for two or more months during the last 

twelve months of such individual’s 

employment with the Federal Reserve 

may not, within one year after leaving 

the employment of the Federal Reserve, 

knowingly accept compensation as an 

employee, officer, director or consultant 

from—

(1) The state member bank; or 

(2) Any company (including a bank 

holding company) that controls the state 

member bank. 

(b) Senior Examiners of Bank Holding 

Companies. An officer or employee of 

the Federal Reserve who serves as the 

senior examiner of a bank holding 

company for two or more months during 

the last twelve months of such 

individual’s employment with the 

Federal Reserve may not, within one 

year of leaving the employment of the 

Federal Reserve, knowingly accept 

compensation as an employee, officer, 

director or consultant from—

(1) The bank holding company; or 

(2) Any depository institution that is 

controlled by the bank holding 

company. 

(c) Senior Examiners of Foreign 

Banks. An officer or employee of the 

Federal Reserve who serves as the 

senior examiner of a foreign bank for 

two or more months during the last 

twelve months of such individual’s 

employment with the Federal Reserve 

may not, within one year of leaving the 

employment of the Federal Reserve, 

knowingly accept compensation as an 

employee, officer, director or consultant 

from—

(1) The foreign bank; or 

(2) Any branch or agency of the 

foreign bank located in the United 

States; or 

(3) Any other depository institution 

controlled by the foreign bank. 

§ 264a.4 When do these special 

restrictions become effective and may they 

be waived? 

The post-employment restrictions set 

forth in section 10(k) of the FDI Act and 

§ 264a.3 do not apply to any officer or 

employee of the Federal Reserve, or any 

former officer or employee of the 

Federal Reserve, if—

(a) The individual ceased to be an 

officer or employee of the Federal 

Reserve before December 17, 2005; or 

(b) The Chairman of the Board of 

Governors certifies, in writing and on a 

case-by-case basis, that granting the 

individual a waiver of the restrictions 

Federal Register / Vol. 70, No. 221 / Thursday, November 17, 2005 / Rules and Regulations 69639 

would not affect the integrity of the 

Federal Reserve’s supervisory program. 

§ 264a.5 What are the penalties for 

violating these special post-employment 

restrictions? 

(a) Penalties under section 10(k) of 

FDI Act.—A senior examiner of the 

Federal Reserve who, after leaving the 

employment of the Federal Reserve, 

violates the restrictions set forth in 

§ 264a.3 shall, in accordance with 

section 10(k)(6) of the FDI Act, be 

subject to one or both of the following 

penalties—

(1) An order—

(i) Removing the individual from 

office or prohibiting the individual from 

further participation in the affairs of the 

relevant state member bank, bank 

holding company, foreign bank or other 

depository institution or company for a 

period of up to five years; and 

(ii) Prohibiting the individual from 

participating in the affairs of any 

insured depository institution for a 

period of up to five years; and/or 

(2) A civil monetary penalty of not 

more than $250,000. 

(b) Imposition of penalties. The 

penalties described in paragraph (a) of 

this section shall be imposed by the 

appropriate Federal banking agency as 

determined under section 10(k)(6) of the 

FDI Act, which may be an agency other 

than the Federal Reserve. 

(c) Scope of prohibition orders. Any 

senior examiner who is subject to an 

order issued under paragraph (a) of this 

section shall, as required by section 

10(k)(6)(B) of the FDI Act, be subject to 

paragraphs (6) and (7) of section 8(e) of 

the FDI Act in the same manner and to 

the same extent as a person subject to 

an order issued under section 8(e). 

(d) Procedures. The procedures 

applicable to actions under paragraph 

(a) of this section are provided in 

section 10(k)(6) of the FDI Act. 

(e) Other penalties. The penalties set 

forth in paragraph (a) of this section are 

not exclusive, and a senior examiner 

who violates the restrictions in § 264a.3 

also may be subject to other 

administrative, civil or criminal 

remedies or penalties as provided in 

law. 

§ 264a.6 What other definitions and rules 

of construction apply for purposes of this 

part? 

For purposes of this part—

(a) Bank holding company means any 

company that controls a bank (as 

provided in section 2 of the Bank 

Holding Company Act of 1956 (12 

U.S.C. 1841 et seq.)). 

(b) A person shall be deemed to act as 

a consultant for a bank or other 

company only if such person works 

directly on matters for, or on behalf of, 

such bank or other company. 

(c) Control has the meaning given in 

section 2 of the Bank Holding Company 

Act. 

(d) Depository institution has the 

meaning given in section 3 of the FDI 

Act and includes an uninsured branch 

or agency of a foreign bank, if such 

branch or agency is located in any State. 

(e) Federal Reserve means the Board 

of Governors of the Federal Reserve 

System and the Federal Reserve Banks. 

(f) Foreign bank means any foreign 

bank or company described in section 

8(a) of the International Banking Act of 

1978 (12 U.S.C. 3106(a)). 

(g) Insured depository institution has 

the meaning given in section 3 of the 

FDI Act. 

Dated: November 10, 2005. 

By order of the Board of Governors of the 

Federal Reserve System. 

Robert deV. Frierson, 

Deputy Secretary of the Board. 

Federal Deposit Insurance Corporation 

12 CFR Chapter III 

Authority and Issuance 

■ For the reasons set forth in the 

preamble, the FDIC amends chapter III 

of title 12 of the Code of Federal 

Regulations as follows: 

PART 308—RULES OF PRACTICE AND 

PROCEDURES 

■ 1. The authority for part 308 

continues to read as follows: 

Authority: 5 U.S.C. 504, 554–557; 12 

U.S.C. 93(b), 164, 505, 1815(e), 1817, 1818, 

1820, 1828, 1829, 1829b, 1831i, 1831m(g)(4), 

1831o, 1831p–1, 1832(c), 1884(b), 1972, 

3102, 3108(a), 3349, 3909, 4717; 15 U.S.C. 

78(h) and (i), 78o–4(c), 78o–5, 78q–1, 78s, 

78u, 78u–2, 78u–3, 78w, 6801(b), 6805(b)(1); 

28 U.S.C. 2461 note; 31 U.S.C. 330, 5321; 42 

U.S.C. 4012a; Sec. 3100(s) Pub. L. 104–134, 

110 Stat. 1321–358. 

■ 2. In § 308.1, redesignate paragraph (g) 

as paragraph (h), remove the word 

‘‘and’’ at the end of the paragraph (f), 

and add a new paragraph (g) to read as 

follows: 

§ 308.1 Scope. 

* * * * * 

(g) Proceedings under section 10(k) of 

the FDIA (12 U.S.C. 1820(k)) to impose 

penalties for violations of the postemployment restrictions under that 

subsection; and 

* * * * * 

PART 336—FDIC EMPLOYEES 

■ 3. Subpart C is added to Part 336 to 

read as follows: 

Subpart C—One-Year Restriction on 

Post-Employment Activities of Senior 

Examiners 

Sec. 

336.10 Purpose and scope. 

336.11 Definitions. 

336.12 One-year post-employment 

restriction. 

336.13 Penalties. 

Authority: 12 U.S.C. 1819 and 1820(k). 

§ 336.10 Purpose and scope. 

This subpart applies to officers or 

employees of the FDIC who are subject 

to the post-employment restrictions set 

forth in section 10(k) of the Federal 

Deposit Insurance Act, 12 U.S.C. 

1820(k), and implements those 

restrictions as they apply to officers and 

employees of the FDIC. 

§ 336.11 Definitions. 

For purposes of this subpart: 

(a) Bank holding company has the 

meaning given to such term in section 

2 of the Bank Holding Company Act of 

1956 (12 U.S.C. 1841(a)). 

(b) A consultant for an insured 

depository institution or other company 

shall include only individuals who 

work directly on matters for, or on 

behalf of, such institution or other 

company. 

(c) Control has the meaning given to 

such term in section 336.3(b), and a 

foreign bank shall be deemed to control 

any insured branch of the foreign bank. 

(d) Depository institution means any 

bank or savings association, including a 

branch of a foreign bank, if such branch 

is located in the United States. 

(e) Foreign bank means any bank or 

company described in section 8(a) of the 

International Banking Act of 1978 (12 

U.S.C. 3106(a)). 

(f) Savings and loan holding company 

has the meaning given to such term in 

section 10(a)(1)(D) of the Home Owners’

Loan Act (12 U.S.C. 1467a(a)(1)(D)). 

(g) A senior examiner for an insured 

depository institution means an officer 

or employee of the FDIC—

(1) who has been authorized by the 

FDIC to conduct examinations or 

inspections of insured depository 

institutions on behalf of the FDIC; 

(2) who has been assigned continuing, 

broad, and lead responsibility for the 

examination or inspection of the 

institution; 

(3) who routinely interacts with 

officers or employees of the institution 

or its affiliates; and 

(4) whose responsibilities with 

respect to the institution represent a 

substantial portion of the FDIC officer or 

employee’s overall responsibilities. 

69640 Federal Register / Vol. 70, No. 221 / Thursday, November 17, 2005 / Rules and Regulations 

§ 336.12 One-year post-employment 

restriction. 

(a) Prohibition. An officer or 

employee of the FDIC who serves as a 

senior examiner of an insured 

depository institution for at least 2 

months during the last 12 months of 

that individual’s employment with the 

FDIC may not, within 1 year after the 

termination date of his or her 

employment with the FDIC, knowingly 

accept compensation as an employee, 

officer, director, or consultant from—

(1) The insured depository institution; 

or 

(2) Any company (including a bank 

holding company or savings and loan 

holding company) that controls such 

institution. 

(b) Waivers. The post-employment 

restrictions in paragraph (a) of this 

section will not apply to a senior 

examiner if the FDIC Chairperson 

certifies in writing and on a case-by case 

basis that a waiver of the restrictions 

will not affect the integrity of the FDIC’s 

supervisory program. 

(c) Effective Date. The postemployment restrictions in paragraph 

(a) of this section will not apply to any 

officer or employee of the FDIC, or any 

former officer or employee of the FDIC, 

who ceased to be an officer or employee 

of the FDIC before December 17, 2005. 

§ 336.13 Penalties. 

(a) Penalties under section 10(k) of the 

FDI Act. A senior examiner of the FDIC 

who violates the post-employment 

restrictions set forth in § 336.12 shall be 

subject to the following penalties—

(1) An order—

(i) Removing such person from office 

or prohibiting such person from further 

participation in the affairs of the 

relevant insured depository institution 

or company (including a bank holding 

company or savings and loan holding 

company) that controls such institution 

for a period of up to five years, and 

(ii) Prohibiting any further 

participation by such person, in any 

manner, in the affairs of any insured 

depository institution for a period of up 

to five years; or 

(2) A civil monetary penalty of not 

more than $250,000; or 

(3) Both. 

(b) Enforcement by appropriate 

Federal banking agency of hiring entity. 

Violations of § 336.12 shall be enforced 

by the appropriate Federal banking 

agency of the depository institution, 

depository institution holding company, 

or other company at which the violation 

occurred, as determined under section 

10(k)(6), which may be an agency other 

than the FDIC. 

(c) Scope of prohibition orders. Any 

senior examiner who is subject to an 

order issued under paragraph (a)(1) of 

this section shall, as required by 12 

U.S.C. 1820(k)(6)(B), be subject to 

paragraphs (6) and (7) of section 8(e) in 

the same manner and to the same extent 

as a person subject to an order issued 

under section 8(e). 

(d) Other penalties. The penalties set 

forth in paragraph (a) of this section are 

not exclusive, and a senior examiner 

who violates the restrictions in § 336.12 

may also be subject to other 

administrative, civil, or criminal 

remedies or penalties as provided by 

law. 

Dated at Washington, DC, this 8th day of 

November, 2005. 

By order of the Board of Directors. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

Department of the Treasury 

Office of Thrift Supervision 

12 CFR Chapter V 

Authority and Issuance 

■ For the reasons set forth in the 

preamble, OTS is amending chapter V of 

title 12 of the Code of Federal 

Regulations as follows: 

■ 1. Add a new part 507 to read as 

follows: 

PART 507—RESTRICTIONS ON POSTEMPLOYMENT ACTIVITIES OF SENIOR 

EXAMINERS 

Sec. 

507.1 What does this part do? 

507.2 Who is a senior examiner? 

507.3 What post-employment restrictions 

apply to senior examiners? 

507.4 When will OTS waive the postemployment restrictions? 

507.5 What are the penalties for violating 

the post-employment restrictions? 

Authority: 12 U.S.C. 1462a, 1463 and 

1820(k). 

§ 507.1 What does this part do? 

This part implements section 10(k) of 

the Federal Deposit Insurance Act 

(FDIA), which prohibits senior 

examiners from accepting compensation 

from certain companies following the 

termination of their employment. See 12 

U.S.C. 1820(k). Except where otherwise 

provided, the terms used in this part 

have the meanings given in section 3 of 

the FDIA (12 U.S.C. 1813). 

§ 507.2 Who is a senior examiner? 

An individual is a senior examiner for 

a particular savings association or 

savings and loan holding company if—

(a) The individual is an officer or 

employee of OTS (including a special 

government employee) who has been 

authorized by OTS to conduct 

examinations or inspections of savings 

associations or savings and loan holding 

companies; 

(b) The individual has been assigned 

continuing, broad and lead 

responsibility for the examination or 

inspection of that savings association or 

savings and loan holding company; and 

(c) The individual’s responsibilities 

for examining, inspecting, or 

supervising that savings association or 

savings and loan holding company: 

(1) Represent a substantial portion of 

the individual’s assigned 

responsibilities at OTS; and 

(2) Require the individual to interact 

on a routine basis with officers and 

employees of the savings association, 

savings and loan holding company, or 

its affiliates. 

§ 507.3 What post-employment restrictions 

apply to senior examiners? 

(a) Prohibition. (1) Senior examiner of 

savings association. An individual who 

serves as a senior examiner of a savings 

association for two or more of the last 

12 months of his or her employment 

with OTS may not, within one year after 

the termination date of his or her 

employment with OTS, knowingly 

accept compensation as an employee, 

officer, director, or consultant from—

(i) The savings association; or 

(ii) A savings and loan holding 

company, bank holding company, or 

any other company that controls the 

savings association. 

(2) Senior examiner of a savings and 

loan holding company. An individual 

who serves as a senior examiner of a 

savings and loan holding company for 

two or more of the last 12 months of his 

or her employment with OTS may not, 

within one year after the termination 

date of his or her employment with 

OTS, knowingly accept compensation as 

an employee, officer, director, or 

consultant from—

(i) The savings and loan holding 

company; or 

(ii) Any depository institution that is 

controlled by the savings and loan 

holding company. 

(b) Effective date. The postemployment restrictions in paragraph 

(a) of this section do not apply to any 

senior examiner who terminated his 

employment at OTS before December 

17, 2005. 

(c) Definitions. For the purposes of 

this section—

(1) Consultant. An individual acts as 

a consultant for a savings association or 

other company only if he or she directly 

works on matters for, or on behalf of, the 

savings association or company. 

Federal Register / Vol. 70, No. 221 / Thursday, November 17, 2005 / Rules and Regulations 69641 

(2) Control. Control has the same 

meaning given in part 574 of this 

chapter. 

§ 507.4 When will OTS waive the postemployment restrictions? 

The post-employment restriction in 

§ 507.3 of this part will not apply to a 

senior examiner if the Director certifies 

in writing and on a case-by-case basis 

that a waiver of the restriction will not 

affect the integrity of OTS’s supervisory 

program. 

§ 507.5 What are the penalties for violating 

the post-employment restrictions? 

(a) Penalties. A senior examiner who 

violates § 507.3 shall, in accordance 

with 12 U.S.C. 1820(k)(6), be subject to 

one or both of the following penalties: 

(1) An order—

(i) Removing the person from office or 

prohibiting the person from further 

participating in the conduct of the 

affairs of the relevant depository 

institution, savings and loan holding 

company, bank holding company or 

other company for up to five years, and 

(ii) Prohibiting the person from 

participating in the affairs of any 

insured depository institution for up to 

five years. 

(2) A civil money penalty not to 

exceed $250,000. 

(b) Scope of prohibition orders. Any 

senior examiner who is subject to an 

order issued under paragraph (a)(1) of 

this section shall be subject to 12 U.S. 

C. 1818(e)(6) and (7) in the same manner 

and to the same extent as a person 

subject to an order issued under 12 

U.S.C. 1818(e). 

(c) Procedures. 12 U.S.C. 1820(k) 

describes the procedures that are 

applicable to actions under paragraph 

(a) of this section and the appropriate 

Federal banking agency authorized to 

take the action, which may be an agency 

other than OTS. Where OTS is the 

appropriate Federal banking agency, it 

will conduct administrative proceedings 

under 12 CFR part 509. 

(d) Other penalties. The penalties 

under this section are not exclusive. A 

senior examiner who violates the 

restriction in § 507.3 may also be subject 

to other administrative, civil, or 

criminal remedy or penalty as provided 

by law. 

PART 509—RULES OF PRACTICE AND 

PROCEDURES IN ADJUDICATORY 

PROCEEDINGS 

■ 2. The authority citation for part 509 

is revised to read as follows: 

Authority: 5 U.S.C. 504, 554–557; 12 

U.S.C. 1464, 1467, 1467a, 1468, 1817(j), 1818, 

1820(k), 3349. 4717; 15 U.S.C. 78(l); 78o–5, 

78u–2; 28 U.S.C. 2461 note; 31 U.S.C. 5321; 

42 U.S.C. 4012a. 

■ 3. In § 509.1, redesignate paragraph (g) 

as paragraph (h); remove the word 

‘‘and’’ at the end of paragraph (f); and 

add a new paragraph (g) to read as 

follows: 

§ 509.1 Scope. 

* * * * * 

(g) Proceedings under section 10(k) of 

the FDIA (12 U.S.C. 1820(k)) to impose 

penalties on senior examiners for 

violation of post-employment 

prohibitions; and 

* * * * * 

Dated: November 7, 2005. 

Office of Thrift Supervision. 

John M. Reich, 

Director. 

[FR Doc. 05–22814 Filed 11–16–05; 8:45 am] 

BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P; 

6720–01–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Part 8 

[Docket No. 05–20] 

RIN 1557–AC96 

Assessment of Fees 

AGENCY: Office of the Comptroller of the 

Currency, Treasury. 

ACTION: Interim final rule. 

SUMMARY: The Office of the Comptroller 

of the Currency (OCC) is issuing this 

interim final rule, with a request for 

comment, to amend its regulation at 12 

CFR Part 8 concerning the timing of 

payments of OCC assessments. The 

interim final rule replaces the current 

process of assessment collection, which 

requires national banks to make the 

initial calculation of the amount due to 

the OCC. Under the revised assessment 

of fees process established by this 

interim rule, the OCC, rather than each 

national bank, will calculate the 

semiannual assessment fee based on the 

most recent Consolidated Reports of 

Condition and Income (Call Report). 

The fee will be due by March 31 and 

September 30 of each year, two months 

later than under the current process. 

Thus, payments that would have been 

due on January 31, 2006, will instead be 

due on March 31, 2006. The OCC will 

notify each national bank of the amount 

of its semiannual assessment and will 

automatically deduct that amount from 

each bank’s designated bank account on 

the payment due date. The interim rule 

changes the assessment collection 

process only; it does not make any 

changes to the method for calculating 

assessments due from national banks. 

DATES: Effective Date: This rule is 

effective December 19, 2005. 

Comment Date: Comments must be 

received by December 19, 2005. 

ADDRESSES: Comments should be 

directed to: 

You should include OCC and Docket 

Number—in your comment. You may 

submit comments by any of the 

following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• OCC Web site: http:// 

www.occ.treas.gov. Click on ‘‘Contact 

the OCC,’’ scroll down and click on 

‘‘Comments on Proposed Regulations.’’

• E-mail address: 

regs.comments@occ.treas.gov. 

• Fax: (202) 874–4448. 

• Mail: Office of the Comptroller of 

the Currency, 250 E Street, SW., Mail 

Stop 1–5, Washington, DC 20219. 

• Hand Delivery/Courier: 250 E 

Street, SW., Attn: Public Information 

Room, Mail Stop 1–5, Washington, DC 

20219. 

Instructions: All submissions received 

must include the agency name (OCC) 

and docket number or Regulatory 

Information Number (RIN) for this 

interim final rule. In general, OCC will 

enter all comments received into the 

docket without change, including any 

business or personal information that 

you provide. You may review comments 

and other related materials by any of the 

following methods: 

• Viewing Comments Personally: You 

may personally inspect and photocopy 

comments at the OCC’s Public 

Information Room, 250 E Street, SW., 

Washington, DC. You can make an 

appointment to inspect comments by 

calling (202) 874–5043. 

• Viewing Comments Electronically: 

You may request e-mail or CD–ROM 

copies of comments that the OCC has 

received by contacting the OCC’s Public 

Information Room at 

regs.comments@occ.treas.gov. 

• Docket: You may also request 

available background documents and 

project summaries using the methods 

described above. 

FOR FURTHER INFORMATION CONTACT: Jean 

Campbell, Senior Attorney, or Mitchell 

Plave, Counsel, Legislative and 

Regulatory Activities Division, (202) 

874–5090; or Bruce W. Halper, Team 

Leader—Revenue, Financial 

Management, (202) 874–2199, Office of 

the Comptroller of the Currency, 250 E 

Street, SW., Washington, DC 20219.