34591Federal Register / Vol. 67, No. 94 / Wednesday, May 15, 2002 / Rules and Regulations
Background
In an interim rule effective and
published in the Federal Register on
February 1, 2002 (67 FR 4877–4878,
Docket No. 01–122–1), we amended the
regulations in 9 CFR part 94 by adding
Slovakia and Slovenia to the list of
regions where bovine spongiform
encephalopathy (BSE) exists. Slovakia
and Slovenia had previously been listed
in § 94.18(a)(2) as regions that present
an undue risk of introducing BSE into
the United States. However, due to the
detection of BSE in native-born animals
in those regions, the interim rule was
necessary to update the disease status of
Slovakia and Slovenia regarding BSE.
Comments on the interim rule were
required to be received on or before
April 2, 2002. We did not receive any
comments. Therefore, for the reasons
given in the interim rule, we are
adopting the interim rule as a final rule.
This action also affirms the
information contained in the interim
rule concerning Executive Order 12866
and the Regulatory Flexibility Act,
Executive Order 12988, and the
Paperwork Reduction Act.
Further, for this action, the Office of
Management and Budget has waived the
review process required by Executive
Order 12866.
List of Subjects in 9 CFR Part 94
Animal diseases, Imports, Livestock,
Meat and meat products, Milk, Poultry
and poultry products, Reporting and
recordkeeping requirements.
PART 94—RINDERPEST, FOOT-AND-
MOUTH DISEASE, FOWL PEST (FOWL
PLAGUE), EXOTIC NEWCASTLE
DISEASE, AFRICAN SWINE FEVER,
HOG CHOLERA, AND BOVINE
SPONGIFORM ENCEPHALOPATHY:
PROHIBITED AND RESTRICTED
IMPORTATIONS
Accordingly, we are adopting as a
final rule, without change, the interim
rule that amended 9 CFR part 94 that
was published at 67 FR 4877–4878 on
February 1, 2002.
Authority: 7 U.S.C. 450, 7711, 7712, 7713,
7714, 7751, and 7754; 19 U.S.C. 1306; 21
U.S.C. 111, 114a, 134a, 134b, 134c, 134f, 136,
and 136a; 31 U.S.C. 9701; 42 U.S.C. 4331 and
4332; 7 CFR 2.22, 2.80, and 371.4.
Done in Washington, DC, this 9th day of
May, 2002.
Peter Fernandez,
Acting Administrator, Animal and Plant
Health Inspection Service.
[FR Doc. 02–12137 Filed 5–14–02; 8:45 am]
BILLING CODE 3410 –34–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 366
RIN 3064–AC29
Minimum Standards of Integrity and
Fitness for an FDIC Contractor
AGENCY: Federal Deposit Insurance
Corporation.
ACTION: Interim final rule.
SUMMARY: The Federal Deposit
Insurance Corporation (FDIC) is issuing
a rule entitled, ‘‘Minimum Standards of
Integrity and Fitness for an FDIC
Contractor’’. This rule replaces the
March 11, 1996, interim final rule
entitled, ‘‘Contractor Conflicts of
Interest’’. This rule establishes
standards for independent contractors
governing contracting prohibitions,
conflicts of interest, ethical
responsibilities, confidential
information, and reportable information.
It is also consistent with the goals and
purposes of titles 18 and 41 of the
United States Code. This rule is in
addition to, and not in lieu of, any other
statute or rule which may apply to the
conduct of persons performing services
pursuant to a contract.
DATES: This rule becomes effective May
15, 2002. We must receive your written
comments on or before July 15, 2002.
ADDRESSES: Address your written
comments to Robert E. Feldman,
Executive Secretary, Attention:
comments/OES, and:
1. Mail to Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429;
2. Hand-deliver to the guard station
located at the rear of the 17th Street
Building on F Street, between 8:30 a.m.
and 5:00 p.m. on business days;
3. Fax to (202) 898–3838;
4. E-mail to: comments@FDIC.gov
<mailto:comments@fdic.gov>; or
5. Post on the FDIC internet site at
http://www.fdic.gov/regulations/laws/
Federal/propose.html.
Comments are available for inspection
and photocopying at the FDIC Public
Information Center, Room 100, 801 17th
Street, NW., Washington, DC, between
9:00 a.m. and 4:30 p.m. on business
days.
FOR FURTHER INFORMATION CONTACT:
Martin A. Blumenthal, Counsel, (202)
736–0359, or Peter M. Somerville,
Counsel, (202) 736–0110, Legal
Division; or Donald L. Rosholt, Senior
Ethics Program Specialist, Office of the
Executive Secretary, (202) 898–7287,
Federal Deposit Insurance Corporation,
550 17th Street, NW., Washington, DC
20429. These are not toll-free numbers.
SUPPLEMENTARY INFORMATION: The
contents of this preamble are listed in
the following outline:
I. Introduction
A. Overview
B. Authority
C. Background
II. Comparison of this rule to the March 11,
1996, interim final rule
A. General changes
B. Definitional changes
C. Prohibition from performing services on
our behalf
D. Contractor responsibilities and
requirements
E. Contractor’s expectations, rights, and
obligations
III. Matters of Regulatory Procedure
A. Regulatory Flexibility Act
B. Paperwork Reduction Act
C. The Treasury and General Government
Appropriations Act, 1999—Assessment
of Federal Regulations and Policies on
Families
D. Congressional Review Act
I. Introduction
A. Overview
This rule sets forth integrity and
fitness provisions for FDIC contractors
in three areas. The first area regards
those persons from whom the FDIC is
prohibited from entering into a contract.
The second area identifies integrity and
fitness responsibilities for independent
contractors. These include conflicts of
interest, minimum standards of ethical
responsibility, confidential information,
and information that contractors must
disclose to the FDIC. The last area
regards a contractor’s expectations,
rights and obligations. These include
what advice and determinations the
FDIC will provide a contractor,
reconsiderations and reviews of those
determinations, and the possible
consequences a person may face for
violating the provisions of this rule.
This rule and SUPPLEMENTARY
INFORMATION section are drafted in plain
language. The word ‘‘person’’ refers to
an individual, corporation, partnership,
or other entity with a legally
independent existence. The terms ‘‘I’’,
‘‘me’’, ‘‘my’’, ‘‘mine’’, ‘‘you’’, and
‘‘yourself’’ refer to a person who
submits an offer to perform or performs,
directly or indirectly, contractual
services or functions on behalf of the
FDIC. The terms ‘‘we’’, ‘‘our’’, and ‘‘us’’
refer to the FDIC, except when the FDIC
operates an insured depository
institution such as a bridge bank or
conservatorship. The phrase ‘‘insured
depository institution’’ refers to any
bank or savings association whose
deposits are insured by the FDIC.
VerDate 11<MAY>2000 17:13 May 14, 2002 Jkt 197001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\15MYR1.SGM pfrm04 PsN: 15MYR1
Background
In an interim rule effective and
published in the Federal Register on
February 1, 2002 (67 FR 4877–4878,
Docket No. 01–122–1), we amended the
regulations in 9 CFR part 94 by adding
Slovakia and Slovenia to the list of
regions where bovine spongiform
encephalopathy (BSE) exists. Slovakia
and Slovenia had previously been listed
in § 94.18(a)(2) as regions that present
an undue risk of introducing BSE into
the United States. However, due to the
detection of BSE in native-born animals
in those regions, the interim rule was
necessary to update the disease status of
Slovakia and Slovenia regarding BSE.
Comments on the interim rule were
required to be received on or before
April 2, 2002. We did not receive any
comments. Therefore, for the reasons
given in the interim rule, we are
adopting the interim rule as a final rule.
This action also affirms the
information contained in the interim
rule concerning Executive Order 12866
and the Regulatory Flexibility Act,
Executive Order 12988, and the
Paperwork Reduction Act.
Further, for this action, the Office of
Management and Budget has waived the
review process required by Executive
Order 12866.
List of Subjects in 9 CFR Part 94
Animal diseases, Imports, Livestock,
Meat and meat products, Milk, Poultry
and poultry products, Reporting and
recordkeeping requirements.
PART 94—RINDERPEST, FOOT-AND-
MOUTH DISEASE, FOWL PEST (FOWL
PLAGUE), EXOTIC NEWCASTLE
DISEASE, AFRICAN SWINE FEVER,
HOG CHOLERA, AND BOVINE
SPONGIFORM ENCEPHALOPATHY:
PROHIBITED AND RESTRICTED
IMPORTATIONS
Accordingly, we are adopting as a
final rule, without change, the interim
rule that amended 9 CFR part 94 that
was published at 67 FR 4877–4878 on
February 1, 2002.
Authority: 7 U.S.C. 450, 7711, 7712, 7713,
7714, 7751, and 7754; 19 U.S.C. 1306; 21
U.S.C. 111, 114a, 134a, 134b, 134c, 134f, 136,
and 136a; 31 U.S.C. 9701; 42 U.S.C. 4331 and
4332; 7 CFR 2.22, 2.80, and 371.4.
Done in Washington, DC, this 9th day of
May, 2002.
Peter Fernandez,
Acting Administrator, Animal and Plant
Health Inspection Service.
[FR Doc. 02–12137 Filed 5–14–02; 8:45 am]
BILLING CODE 3410 –34–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 366
RIN 3064–AC29
Minimum Standards of Integrity and
Fitness for an FDIC Contractor
AGENCY: Federal Deposit Insurance
Corporation.
ACTION: Interim final rule.
SUMMARY: The Federal Deposit
Insurance Corporation (FDIC) is issuing
a rule entitled, ‘‘Minimum Standards of
Integrity and Fitness for an FDIC
Contractor’’. This rule replaces the
March 11, 1996, interim final rule
entitled, ‘‘Contractor Conflicts of
Interest’’. This rule establishes
standards for independent contractors
governing contracting prohibitions,
conflicts of interest, ethical
responsibilities, confidential
information, and reportable information.
It is also consistent with the goals and
purposes of titles 18 and 41 of the
United States Code. This rule is in
addition to, and not in lieu of, any other
statute or rule which may apply to the
conduct of persons performing services
pursuant to a contract.
DATES: This rule becomes effective May
15, 2002. We must receive your written
comments on or before July 15, 2002.
ADDRESSES: Address your written
comments to Robert E. Feldman,
Executive Secretary, Attention:
comments/OES, and:
1. Mail to Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429;
2. Hand-deliver to the guard station
located at the rear of the 17th Street
Building on F Street, between 8:30 a.m.
and 5:00 p.m. on business days;
3. Fax to (202) 898–3838;
4. E-mail to: comments@FDIC.gov
<mailto:comments@fdic.gov>; or
5. Post on the FDIC internet site at
http://www.fdic.gov/regulations/laws/
Federal/propose.html.
Comments are available for inspection
and photocopying at the FDIC Public
Information Center, Room 100, 801 17th
Street, NW., Washington, DC, between
9:00 a.m. and 4:30 p.m. on business
days.
FOR FURTHER INFORMATION CONTACT:
Martin A. Blumenthal, Counsel, (202)
736–0359, or Peter M. Somerville,
Counsel, (202) 736–0110, Legal
Division; or Donald L. Rosholt, Senior
Ethics Program Specialist, Office of the
Executive Secretary, (202) 898–7287,
Federal Deposit Insurance Corporation,
550 17th Street, NW., Washington, DC
20429. These are not toll-free numbers.
SUPPLEMENTARY INFORMATION: The
contents of this preamble are listed in
the following outline:
I. Introduction
A. Overview
B. Authority
C. Background
II. Comparison of this rule to the March 11,
1996, interim final rule
A. General changes
B. Definitional changes
C. Prohibition from performing services on
our behalf
D. Contractor responsibilities and
requirements
E. Contractor’s expectations, rights, and
obligations
III. Matters of Regulatory Procedure
A. Regulatory Flexibility Act
B. Paperwork Reduction Act
C. The Treasury and General Government
Appropriations Act, 1999—Assessment
of Federal Regulations and Policies on
Families
D. Congressional Review Act
I. Introduction
A. Overview
This rule sets forth integrity and
fitness provisions for FDIC contractors
in three areas. The first area regards
those persons from whom the FDIC is
prohibited from entering into a contract.
The second area identifies integrity and
fitness responsibilities for independent
contractors. These include conflicts of
interest, minimum standards of ethical
responsibility, confidential information,
and information that contractors must
disclose to the FDIC. The last area
regards a contractor’s expectations,
rights and obligations. These include
what advice and determinations the
FDIC will provide a contractor,
reconsiderations and reviews of those
determinations, and the possible
consequences a person may face for
violating the provisions of this rule.
This rule and SUPPLEMENTARY
INFORMATION section are drafted in plain
language. The word ‘‘person’’ refers to
an individual, corporation, partnership,
or other entity with a legally
independent existence. The terms ‘‘I’’,
‘‘me’’, ‘‘my’’, ‘‘mine’’, ‘‘you’’, and
‘‘yourself’’ refer to a person who
submits an offer to perform or performs,
directly or indirectly, contractual
services or functions on behalf of the
FDIC. The terms ‘‘we’’, ‘‘our’’, and ‘‘us’’
refer to the FDIC, except when the FDIC
operates an insured depository
institution such as a bridge bank or
conservatorship. The phrase ‘‘insured
depository institution’’ refers to any
bank or savings association whose
deposits are insured by the FDIC.
VerDate 11<MAY>2000 17:13 May 14, 2002 Jkt 197001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\15MYR1.SGM pfrm04 PsN: 15MYR1
34592 Federal Register / Vol. 67, No. 94 / Wednesday, May 15, 2002 / Rules and Regulations
B. Authority
The statutory authorities for adopting
this rule are sections 12(f)(3) and (4) of
the Federal Deposit Insurance Act (FDI
Act), 12 U.S.C. 1822(f)(3) and (4), and
our general rulemaking authority found
at 12 U.S.C. 1819 (Tenth). Section 19 of
the Resolution Trust Corporation
Completion Act (RTCCA), Pub. L. 103–
204, 107 Stat. 2369 (1993), required the
addition of section 12(f) to the FDI Act.
We may establish other integrity and
fitness policies where we determine
such policies are required by law or
appropriate to maintain the integrity of
our programs. Any such policies may be
independent of, in conjunction with, or
in addition to the restrictions set forth
in this rule.
We may also, temporarily or
permanently, suspend this rule or
exempt a person from compliance with
any part of this rule for good cause
shown, in order to protect our interests
or to provide an orderly transfer of
services to another person.
C. Background
The contractor integrity and fitness
rules, based on statutory requirements,
are regulatory tools the FDIC uses to
assure that certain of its contractors
meet minimum standards of
competence, experience, integrity and
fitness. See 501(a), FHLB Act Sec.
21A(p)(6). This statute was enacted to
ensure that no person who contributed
to the failure of an insured depository
institution could contract with the FDIC
without disclosure and considerable
scrutiny. The Oversight Board of the
Resolution Trust Corporation (RTC)
issued the original proposed rule on
November 28, 1989. From that original
rule, related FDIC rules, and many years
of RTC and FDIC experience, we
propose this rule.
On June 24, 1994, we published a
proposed rule applicable to
independent contractors (59 FR 32661–
32668), as required by 12 U.S.C.
1822(f)(3). That rulemaking proposed
standards governing conflicts of interest,
ethical responsibilities, and use of
confidential information. It also
proposed procedures for ensuring that
independent contractors meet minimum
standards for competence, experience,
integrity, and fitness. We received six
comment letters. After careful
consideration of each comment and
numerous changes that the Office of
Government Ethics (OGE) requested, we
made appropriate modifications to the
proposal resulting in the reorganization
and modification of some provisions.
On March 11, 1996, we adopted an
interim final rule entitled, ‘‘Contractor
Conflicts of Interest’’, (61 FR 9590), with
the concurrence of OGE. We determined
that an interim final rule was
appropriate in order to allow interested
parties to comment on the rule while
providing prompt implementation of the
rule to satisfy concerns relating to the
merger of the RTC into the FDIC. We
received only one comment on the
interim final rule and it was non-
substantive. We have gained significant
experience regarding requests for (1)
waivers of disqualifying conditions and
conflicts of interest, and (2)
reconsiderations of our determinations
since the interim final rule was issued.
We now publish this rule entitled,
‘‘Minimum Standards of Integrity and
Fitness for an FDIC Contractor’’, to
allow for public comment. We believe
that public comment is appropriate
given the length of time that has
transpired since the March 11, 1996,
interim final rule was published and the
changes we are making now. The
provisions of this rule are similar to the
interim final rule, except as addressed
in section II below. In general, those
changes relieve restrictions on
contractors. Therefore, although we
request comments on all aspects of this
rule, we will publish the rule as an
interim final rule, having found good
cause for making it effective
immediately. The March 11, 1996,
interim final rule is replaced with this
rule. 5 U.S.C. 533(b)(3)(B) and 533(d)(1)
and (3).
II. Comparison of This Rule to the
March 11, 1996, Interim Final Rule
A. General Changes
This rule is published in accordance
with plain language guidelines. It does
not include the internal agency
procedures that were incorporated in
the March 11, 1996, interim final rule.
Instead, it provides for the Board of
Directors to delegate to the Chairman, or
his designee, the authority to grant
waivers and implement procedures for
this rule. Examples are added at
§§ 366.4(b), 366.6(c), 366.10(b),
366.11(b), 366.12(e) and 366.13(b) for
clarity and guidance.
The title of this rule is changed from
‘‘Contractor Conflicts of Interest’’ to
‘‘Minimum Standards of Integrity and
Fitness for an FDIC Contractor’’ to better
describe its provisions.
The waiver and reconsideration
provisions established in the March 11,
1996, interim final rule set forth internal
agency processes and procedures, some
of which do not meet the needs or
satisfy the requirements of our diverse
activities. For example, a conflict of
interest consideration is different for a
service contractor when it expresses an
interest in purchasing an asset from us
than when it competes to provide us
with asset services. A service contractor
is an independent contractor that
provides services other than goods,
including, but not limited to, legal
services, asset disposition or
management services, or management
and consulting services. Furthermore,
the universe of persons subject to the
provisions of this rule represents a wide
variety of professions and organizational
structures, which we must take into
consideration in making our integrity
and fitness determinations. For
example, the threshold of what
constitutes a conflict of interest for legal
services is not necessarily the same as
that for non-legal services. Conflicts of
interest for legal matters involve
representational and non-
representational issues. For these
reasons, we will continue to issue
separate and complementary internal
policies and procedures, consistent with
this rule, for our different program areas
as may be necessary.
We interpret the language of section
1822(f) to distinguish between two
different types of service contracts. The
first type is incidental or housekeeping
service contracts. The phrase
‘‘incidental or housekeeping’’ refers to
services or activities relating to our day-
to-day routine corporate operations.
Examples of incidental or housekeeping
service contracts would include, but
would not be limited to, (1) food service
contracts for employee cafeteria
services, (2) contracts for janitorial or
cleaning services, (3) contracts for mail
delivery services, and (4) contracts
providing employee benefits. Such
incidental or housekeeping service
contracts do not arrange for contract
workers (rather than FDIC employees) to
perform services for or on our behalf a
FDIC function or activity required of the
FDIC by statute (described below).
Incidental and housekeeping service
contracts are not covered by the
statutory minimum standards of fitness
and integrity set forth at 12 U.S.C.
1822(f)(4)(E), nor are they covered by
this rule. We reserve our discretion and
flexibility to determine an appropriate
standard of integrity and fitness where
a contract worker would provide
incidental or housekeeping services for
or to us. We may impose fitness and
integrity requirements up to and
including the statutory standards upon
such contract workers.
The second type of service contract
provides for contract workers (rather
than FDIC employees) to perform FDIC
functions and/or activities for or on our
behalf. The FDIC functions and/or
VerDate 11<MAY>2000 17:13 May 14, 2002 Jkt 197001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\15MYR1.SGM pfrm04 PsN: 15MYR1
B. Authority
The statutory authorities for adopting
this rule are sections 12(f)(3) and (4) of
the Federal Deposit Insurance Act (FDI
Act), 12 U.S.C. 1822(f)(3) and (4), and
our general rulemaking authority found
at 12 U.S.C. 1819 (Tenth). Section 19 of
the Resolution Trust Corporation
Completion Act (RTCCA), Pub. L. 103–
204, 107 Stat. 2369 (1993), required the
addition of section 12(f) to the FDI Act.
We may establish other integrity and
fitness policies where we determine
such policies are required by law or
appropriate to maintain the integrity of
our programs. Any such policies may be
independent of, in conjunction with, or
in addition to the restrictions set forth
in this rule.
We may also, temporarily or
permanently, suspend this rule or
exempt a person from compliance with
any part of this rule for good cause
shown, in order to protect our interests
or to provide an orderly transfer of
services to another person.
C. Background
The contractor integrity and fitness
rules, based on statutory requirements,
are regulatory tools the FDIC uses to
assure that certain of its contractors
meet minimum standards of
competence, experience, integrity and
fitness. See 501(a), FHLB Act Sec.
21A(p)(6). This statute was enacted to
ensure that no person who contributed
to the failure of an insured depository
institution could contract with the FDIC
without disclosure and considerable
scrutiny. The Oversight Board of the
Resolution Trust Corporation (RTC)
issued the original proposed rule on
November 28, 1989. From that original
rule, related FDIC rules, and many years
of RTC and FDIC experience, we
propose this rule.
On June 24, 1994, we published a
proposed rule applicable to
independent contractors (59 FR 32661–
32668), as required by 12 U.S.C.
1822(f)(3). That rulemaking proposed
standards governing conflicts of interest,
ethical responsibilities, and use of
confidential information. It also
proposed procedures for ensuring that
independent contractors meet minimum
standards for competence, experience,
integrity, and fitness. We received six
comment letters. After careful
consideration of each comment and
numerous changes that the Office of
Government Ethics (OGE) requested, we
made appropriate modifications to the
proposal resulting in the reorganization
and modification of some provisions.
On March 11, 1996, we adopted an
interim final rule entitled, ‘‘Contractor
Conflicts of Interest’’, (61 FR 9590), with
the concurrence of OGE. We determined
that an interim final rule was
appropriate in order to allow interested
parties to comment on the rule while
providing prompt implementation of the
rule to satisfy concerns relating to the
merger of the RTC into the FDIC. We
received only one comment on the
interim final rule and it was non-
substantive. We have gained significant
experience regarding requests for (1)
waivers of disqualifying conditions and
conflicts of interest, and (2)
reconsiderations of our determinations
since the interim final rule was issued.
We now publish this rule entitled,
‘‘Minimum Standards of Integrity and
Fitness for an FDIC Contractor’’, to
allow for public comment. We believe
that public comment is appropriate
given the length of time that has
transpired since the March 11, 1996,
interim final rule was published and the
changes we are making now. The
provisions of this rule are similar to the
interim final rule, except as addressed
in section II below. In general, those
changes relieve restrictions on
contractors. Therefore, although we
request comments on all aspects of this
rule, we will publish the rule as an
interim final rule, having found good
cause for making it effective
immediately. The March 11, 1996,
interim final rule is replaced with this
rule. 5 U.S.C. 533(b)(3)(B) and 533(d)(1)
and (3).
II. Comparison of This Rule to the
March 11, 1996, Interim Final Rule
A. General Changes
This rule is published in accordance
with plain language guidelines. It does
not include the internal agency
procedures that were incorporated in
the March 11, 1996, interim final rule.
Instead, it provides for the Board of
Directors to delegate to the Chairman, or
his designee, the authority to grant
waivers and implement procedures for
this rule. Examples are added at
§§ 366.4(b), 366.6(c), 366.10(b),
366.11(b), 366.12(e) and 366.13(b) for
clarity and guidance.
The title of this rule is changed from
‘‘Contractor Conflicts of Interest’’ to
‘‘Minimum Standards of Integrity and
Fitness for an FDIC Contractor’’ to better
describe its provisions.
The waiver and reconsideration
provisions established in the March 11,
1996, interim final rule set forth internal
agency processes and procedures, some
of which do not meet the needs or
satisfy the requirements of our diverse
activities. For example, a conflict of
interest consideration is different for a
service contractor when it expresses an
interest in purchasing an asset from us
than when it competes to provide us
with asset services. A service contractor
is an independent contractor that
provides services other than goods,
including, but not limited to, legal
services, asset disposition or
management services, or management
and consulting services. Furthermore,
the universe of persons subject to the
provisions of this rule represents a wide
variety of professions and organizational
structures, which we must take into
consideration in making our integrity
and fitness determinations. For
example, the threshold of what
constitutes a conflict of interest for legal
services is not necessarily the same as
that for non-legal services. Conflicts of
interest for legal matters involve
representational and non-
representational issues. For these
reasons, we will continue to issue
separate and complementary internal
policies and procedures, consistent with
this rule, for our different program areas
as may be necessary.
We interpret the language of section
1822(f) to distinguish between two
different types of service contracts. The
first type is incidental or housekeeping
service contracts. The phrase
‘‘incidental or housekeeping’’ refers to
services or activities relating to our day-
to-day routine corporate operations.
Examples of incidental or housekeeping
service contracts would include, but
would not be limited to, (1) food service
contracts for employee cafeteria
services, (2) contracts for janitorial or
cleaning services, (3) contracts for mail
delivery services, and (4) contracts
providing employee benefits. Such
incidental or housekeeping service
contracts do not arrange for contract
workers (rather than FDIC employees) to
perform services for or on our behalf a
FDIC function or activity required of the
FDIC by statute (described below).
Incidental and housekeeping service
contracts are not covered by the
statutory minimum standards of fitness
and integrity set forth at 12 U.S.C.
1822(f)(4)(E), nor are they covered by
this rule. We reserve our discretion and
flexibility to determine an appropriate
standard of integrity and fitness where
a contract worker would provide
incidental or housekeeping services for
or to us. We may impose fitness and
integrity requirements up to and
including the statutory standards upon
such contract workers.
The second type of service contract
provides for contract workers (rather
than FDIC employees) to perform FDIC
functions and/or activities for or on our
behalf. The FDIC functions and/or
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