Under section 6303(b) of the
Intelligence Reform and Terrorism Prevention Act of 2004 (Pub. L.
108-458, 118 Stat. 3638, 3751-53), which added a new section 10(k)
to the Federal Deposit Insurance Act (FDI Act), an officer or employee
of a federal banking agency or a Federal Reserve Bank who acts as
a senior examiner for a particular depository institution may not,
within one year after terminating employment with the 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. 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.Background
and Summary of Post-Employment Restrictions for Senior Examiners
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 those circumstances,
the post-employment restrictions apply to relationships with the depository
institution holding company and any depository institution subsidiary
of the holding company. 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. The restrictions 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 12 months of their
employment at the agency or Reserve Bank.
If a senior examiner violates these one-year post-employment
restrictions, the appropriate federal banking agency is required to
initiate proceedings to impose an order of removal and prohibition
or a civil money penalty, or both, on the former senior examiner.
The restrictions in section 10(k) are in addition to any other conflict-of-interest
and ethics rules and restrictions that may apply to examiners under
applicable federal law or the internal codes of conduct established
by the Board or a Reserve Bank.
