Executive Order 13486

Executive Order 13486 provides directives issued by Barack Obama on January 18, 2009, addressing financial conflicts of interest for executive branch appointees and advisers. The order amended prior ethics rules established under Executive Order 12674 and Executive Order 12731, and interacted with statutory frameworks such as the Ethics in Government Act of 1978 and provisions overseen by the Office of Government Ethics. It shaped practices affecting officials across administrations, influencing interactions with entities including Goldman Sachs, JPMorgan Chase, Citigroup, and various lobbying firms.

Background

In the aftermath of the 2008 financial crisis and amid scrutiny of ties between administration officials and Wall Street institutions, Barack Obama issued the order as part of an agenda aimed at restoring public trust. The order referenced standards that evolved from actions by earlier presidents like Richard Nixon and Bill Clinton, and administrative bodies such as the Office of Personnel Management and the Department of Justice. High-profile confirmations for Cabinet posts including Timothy Geithner, Hillary Clinton, and Eric Holder intensified debates drawing in watchdog groups like Common Cause and the Project on Government Oversight as well as media organizations including The New York Times, The Washington Post, and The Wall Street Journal.

Provisions

The order expanded recusals, divestiture, and disclosure requirements drawing on precedents from Executive Order 12674 authored under Ronald Reagan and later modified during the Clinton administration. It required executive branch appointees to recuse themselves from particular matters involving former employers such as Morgan Stanley and Bank of America and to adhere to ethics pledges similar to those administered by the Office of Government Ethics and the Department of the Treasury. Specific measures mirrored legislative concepts from the Ethics Reform Act debates and codified temporary restrictions resembling standards applied in the Presidential Transition Act of 1963 process for nominees associated with firms like Lehman Brothers and Bear Stearns.

Implementation and Impact

Implementation relied on agency ethics officials, the Office of Government Ethics, and confirmation processes in the United States Senate, including oversight by committees such as the Senate Committee on Homeland Security and Governmental Affairs and the Senate Committee on Finance. The order affected interactions between administration officials and major financial institutions including Goldman Sachs and Citigroup, influencing negotiation dynamics with regulators like the Securities and Exchange Commission and the Federal Reserve System. It also shaped hiring practices related to revolving door concerns involving former staff from think tanks such as the Brookings Institution and advocacy groups like the Heritage Foundation.

Legal Challenges and Controversies

The order prompted litigation and commentary engaging constitutional scholars from institutions such as Harvard Law School, Yale Law School, and Stanford Law School, and drew scrutiny from advocacy organizations including Public Citizen and the ACLU. Debates centered on the scope of presidential authority under instruments like the Appointments Clause and the enforceability of ethics pledges compared to statutory mandates under the Ethics in Government Act of 1978. Controversies cited parallels to past disputes involving Samuel Alito, Antonin Scalia, and confirmation conflicts that had prompted Senate inquiries during other administrations.

Related Policies and Subsequent Actions

The order influenced later executive actions and regulatory guidance during the Obama administration and became a reference point for subsequent directives under later presidents including Donald Trump and Joe Biden, who each issued their own ethics guidance and executive orders addressing conflicts of interest. It intersected with legislative efforts such as proposals in the United States Congress to tighten disclosure and revolving door restrictions and informed policy discussions at agencies like the Department of the Treasury and the Office of Management and Budget. The order remains cited in analyses by academic journals at institutions including Georgetown University, Columbia University, and University of Chicago.

Category:United States executive orders