To amend the Federal Deposit Insurance Act to prevent conflicts of interest by establishing post-employment limitations on bank examiners-in-charge, and for other purposes.

September 15, 2004

Mr. GUTIERREZ (for himself and Mrs. KELLY) introduced the following bill; which was referred to the Committee on Financial Services

To amend the Federal Deposit Insurance Act to prevent conflicts of interest by establishing post-employment limitations on bank examiners-in-charge, and for other purposes.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the `Close the Bank Examiner Revolving Door Act '.

SEC. 2. POST-EMPLOYMENT LIMITATIONS ON BANK EXAMINERS-IN-CHARGE.

Section 10 of the Federal Deposit Insurance Act (12 U.S.C. 1821) is amended by adding at the end the following new subsection:

`(g) Post-Employment Limitations on Bank Examiners-in-Charge-

`(1) IN GENERAL- In the case of any person who--

`(A) ceases to be an officer or employee of a Federal banking agency; and

`(B) at any time during the 3-year period ending on the date such person ceases to be an officer or employee of such agency, was the chief examiner of, or had supervisory authority over, any depository institution,

such person may not hold any office, position, or employment (including a position which causes such person to be treated as an institution-affiliated party) at any such depository institution during the 1-year period beginning on such date.

`(2) PENALTY FOR NONCOMPLIANCE-

`(A) IN GENERAL- Any person who violates paragraph (1) shall forfeit such person's retirement and other benefits under title 5, United States Code.

`(B) NOTICE- If the head of any Federal banking agency determines that a violation of paragraph (1) has occurred, the head of such agency shall notify the Director of the Office of Personnel Management of such violation.'.

END