[Federal Register Volume 75, Number 178 (Wednesday, September 15, 2010)]
[Rules and Regulations]
[Pages 55941-55942]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-22410]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 75 , No. 178 / Wednesday, September 15, 2010
/ Rules and Regulations
[[Page 55941]]
EXPORT-IMPORT BANK OF THE UNITED STATES
5 CFR Part 6201
12 CFR Part 400
[Public Notice 2010-31]
Supplemental Standards of Ethical Conduct for Employees of the
Export-Import Bank of the United States
AGENCY: Export-Import Bank of the United States (Ex-Im Bank).
ACTION: Final rule.
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SUMMARY: The Ex-Im Bank, with the concurrence of the Office of
Government Ethics (OGE), is issuing a final rule that supplements the
Standards of Ethical Conduct for Employees of the Executive Branch
(Standards). This final rule adopts prior interim regulations as final,
with a revision deleting a section related to prohibited financial
interests. This rule also adopts as final, without change, the Ex-Im
Bank's residual cross-reference provision.
DATES: Effective Date: September 15, 2010.
ADDRESSES: Office of the General Counsel, Export-Import Bank of the
United States, 811 Vermont Ave., NW., Washington, DC 20571.
FOR FURTHER INFORMATION CONTACT: Faisal B. Siddiqui, Assistant General
Counsel for Administration, Export-Import Bank of the United States,
Phone: (202) 565-3435/Fax: (202) 565-3563.
SUPPLEMENTARY INFORMATION:
I. Background
On April 7, 1995, Ex-Im Bank, with the concurrence of OGE,
published an interim rule setting forth the Supplemental Standards of
Ethical Conduct for Employees of the Export-Import Bank of the United
States--5 CFR part 6201. See 60 FR 17625-17628. It is noted that no
comments were received in response to the request for comments
published in the Federal Register as part of the interim rule. In that
rulemaking, Ex-Im Bank also issued a residual cross-reference provision
in place of its older standards of conduct at 12 CFR part 400. The Ex-
Im Bank, with OGE concurrence, now publishes as final, with the changes
to the interim rule noted below, the Supplemental Standards of Ethical
Conduct for Employees of the Export-Import Bank of the United States.
Ex-Im Bank is also publishing as final, without change, its residual
cross-reference provision.
II. Analysis of Revisions
The final rule amends the interim rule Ex-Im Bank Supplemental
Standards by removing the section related to prohibited financial
interests at 5 CFR 6201.102, and by re-designating Sec. 6201.103--
Prior Approval for Outside Employment as Sec. 6201.102.
In light of over a decade of experience, Ex-Im Bank has determined
that the provisions of Sec. 6201.102 of the interim rule that prohibit
Ex-Im Bank employees who are required to file public or confidential
financial disclosure forms (SF278s or OGE Form 450s), as well their
spouses and dependent children, from owning specified securities in
``designated entities'' with which Ex-Im Bank conducts business are
unnecessary given the Bank's practice of screening employees for
potential financial conflicts.
Ex-Im Bank has determined that its implementation of the
government-wide statutory and regulatory scheme is sufficient to ensure
that Ex-Im Bank employees do not take official agency action with
regard to prohibited financial interests. Ex-Im Bank employees will
continue to be bound by 5 CFR 2635.401-2635.403 (Standards of Ethical
Conduct for the Employees of the Executive Branch, Subpart D:
Conflicting Financial Interests) and related statutes and regulations,
including 18 U.S.C. 208 and 5 CFR part 2640, with regard to their
financial interests.
The revision will not impact Ex-Im Bank's ability to ensure that
its employees do not engage in conduct that violates applicable
conflict of interest statutes and regulations. Ex-Im Bank will continue
to utilize its participant database--which lists the lenders,
exporters, suppliers, borrowers and buyers that utilize Ex-Im Bank
programs--to carefully screen all financial disclosure reports (both
the public and confidential reports) and maintain regular contact with
filers regarding the matters in which they are working to ensure that
no conflicts arise.
Upon determining that an employee owns a security or has a
financial interest that poses a potential conflict of interest, Ex-Im
Bank's Designated Agency Ethics Official (DAEO) or his designated
alternate, writes a memorandum to the employee advising him or her of
the potential conflict and the applicable law and regulation regarding
conflicts. If recusal or waiver is not appropriate, the employee is
directed to divest the interest.
Ex-Im Bank is confident that the policy and practices noted above,
carried out in accordance with the government-wide laws and regulations
governing financial conflicts of interest, are a sufficient means of
screening for and handling conflicts of interest with regard to
securities ownership and ensure that a reasonable person would not
question the impartiality and objectivity with which Ex-Im Bank
administers its programs.
III. Matters of Regulatory Procedure
Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b)(3)(A) and (B), (d)(1) and (d)(3), good
cause exists for the waiver of a general notice of proposed rulemaking,
the opportunity for public comment, and the 30-day delay in
effectiveness of this final rule, which adopts as final a prior interim
rule, with revisions. This determination is based on the fact that this
rulemaking applies solely to agency practices and procedures, and
relieves a restriction on certain financial interests of employees who
file public or confidential financial disclosure reports, and their
spouses and minor children, that Ex-Im Bank has determined is no longer
needed. It is important and in the public interest that the revisions
take effect as promptly as possible.
Small Business Regulatory Enforcement Fairness Act of 1996
This rule is not a ``major rule,'' as defined by the Small Business
Regulatory Enforcement Fairness Act of
[[Page 55942]]
1996. This rule will not result in an annual effect on the economy of
$100,000,000 or more; a major increase in costs or prices; or
significant adverse effects on competition, employment, investment,
productivity, innovation, or on the ability of United States-based
companies to compete with foreign-based companies in domestic and
export markets. 5 U.S.C. 804.
Unfunded Mandates Reform Act
For the purposes of the Unfunded Mandates Reform Act of 1995 (2
U.S.C. chapter 25), this rule will not significantly or uniquely affect
small governments and will not result in increased expenditures by
State, local, and tribal governments, or by the private sector, of $100
million or more (as adjusted for inflation).
List of Subjects in 5 CFR Part 6201 and 12 CFR Part 400
Conflict of interests, Government employees.
Dated: August 25, 2010.
Jonathan J. Cordone,
General Counsel, Export-Import Bank of the United States.
Approved: August 30, 2010.
Robert I. Cusick,
Director, Office of Government Ethics.
0
Accordingly, for the reasons set forth in the preamble, the Export-
Import Bank of the United States, with the concurrence of the Office of
Government Ethics, is adopting the interim rule, adding 5 CFR part 6201
and revising 12 CFR part 400, which was published at 60 FR 17625-17628,
April 7, 1995, as a final rule with the following changes:
TITLE 5--ADMINISTRATIVE PERSONNEL
PART 6201--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES
OF THE EXPORT-IMPORT BANK OF THE UNITED STATES
0
1. The authority citation for part 6201 is revised to read as follows:
Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government
Act of 1978); E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 215, as
modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306; 5
CFR 2635.105, 2635.803.
Sec. 6201.102 [Removed]
0
2. Section 6201.102 is removed.
Sec. 6201.103 [Redesignated as Sec. 6201.102]
0
3. Section 6201.103 is redesignated as Sec. 6201.102.
[FR Doc. 2010-22410 Filed 9-14-10; 8:45 am]
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