[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]

Rules and Regulations
                                                Federal Register

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Federal Register / Vol. 75 , No. 178 / Wednesday, September 15, 2010 
/ Rules and Regulations

[[Page 55941]]


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.


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.


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.

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:



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]

2. Section 6201.102 is removed.

Sec.  6201.103  [Redesignated as Sec.  6201.102]

3. Section 6201.103 is redesignated as Sec.  6201.102.

[FR Doc. 2010-22410 Filed 9-14-10; 8:45 am]