II 

111TH CONGRESS 

1ST SESSION S. 1242 

To prohibit the Federal Government from holding ownership interests, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 11, 2009 

Mr. THUNE (for himself, Mr. COBURN, Mr. INHOFE, Mr. VITTER, Mr. 

JOHANNS, Mr. CORNYN, Mr. KYL, Mr. MCCONNELL, Mr. BARRASSO, and 

Mr. ENSIGN) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To prohibit the Federal Government from holding ownership 

interests, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Government Owner5 ship Exit Plan Act of 2009’’. 

6 SEC. 2. DEFINITION. 

7 In this Act— 

8 (1) the term ‘‘ownership interest’’ means an in9 terest in a troubled asset described in section 


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1 3(9)(B) of the Emergency Economic Stabilization 

2 Act of 2008 (12 U.S.C. 5202(a)(1)), as in effect on 

3 the day before the date of enactment of this Act, 

4 that was purchased by the Secretary under section 

5 101(a)(1) of such Act (12 U.S.C. 5211(a)(1)); and 

6 (2) the term ‘‘Secretary’’ means the Secretary 

7 of the Treasury. 

8 SEC. 3. RE-PRIVATIZATION OF PRIVATE ENTITIES. 

9 (a) PROHIBITION ON FEDERAL GOVERNMENT HOLD10 ING OWNERSHIP INTERESTS.— 

11 (1) IN GENERAL.—Beginning on the date of en12 actment of this Act, the Federal Government may 

13 not acquire, directly or indirectly, any ownership in14 terest. 

15 (2) DIVESTITURE.—Except as provided in sub16 section (b), the Secretary shall divest the Federal 

17 Government of any ownership interest not later than 

18 July 1, 2010. 

19 (b) LIMITED AUTHORITY.— 

20 (1) IN GENERAL.—Beginning on July 1, 2010, 

21 the Secretary may hold an ownership interest with 

22 respect to a particular entity for a period of not 

23 more than 6 months if, not later than July 1, 2010, 

24 the Secretary submits a report to Congress with re25 spect to that entity stating that— 


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1 (A) compliance with subsection (a)(2) with 

2 respect to such entity would have a significant 

3 adverse impact on the taxpayers of the United 

4 States; and 

5 (B) there is a reasonable expectation that 

6 a waiver of subsection (a)(2) would allow the 

7 Secretary to recover the cost to the Federal 

8 Government of acquiring such ownership inter9 est. 

10 (2) SINGLE RENEWAL.—The Secretary may 

11 renew an extension under paragraph (1) for a single 

12 period of not more than 6 months, if the Secretary 

13 submits to Congress a report stating that the condi14 tions described in subparagraphs (A) and (B) of 

15 paragraph (1) still exist with respect to the subject 

16 ownership interest. 

17 (c) CONFORMING AMENDMENT.—Section 3(9) of the 

18 Emergency Economic Stabilization Act of 2008 (12 

19 U.S.C. 5202(9)) is amended— 

20 (1) in subparagraph (A), by striking ‘‘; and’’ at 

21 the end and inserting a period; 

22 (2) by striking ‘‘means—’’ and all that follows 

23 through ‘‘residential’’ in subparagraph (A) and in24 serting ‘‘means residential’’; and 

25 (3) by striking subparagraph (B). 


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1 (d) DEPOSIT OF FUNDS.— 

2 (1) IN GENERAL.—Section 115(a)(3) of the 

3 Emergency Economic Stabilization Act of 2008 (12 

4 U.S.C. 5225(a)(3)) is amended by striking ‘‘out5 standing at any one time’’. 

6 (2) DEPOSIT OF FUNDS INTO TREASURY.— 

7 (A) IN GENERAL.—On and after the date 

8 of enactment of this Act, all repayments of obli9 gations arising under the Emergency Economic 

10 Stabilization Act of 2008 (12 U.S.C. 5201 et 

11 seq.), and all proceeds from the sale of assets 

12 acquired by the Federal Government under that 

13 Act, shall be paid into the general fund of the 

14 Treasury for reduction of the public debt, in ac15 cordance with section 106(d) of that Act (12 

16 U.S.C. 5216(d)), as amended by this sub17 section. 

18 (B) CONFORMING AMENDMENT.—Section 

19 106(d) of the Emergency Economic Stabiliza20 tion Act of 2008 (12 U.S.C. 5216(d)) is amend21 ed by inserting ‘‘, and repayments of obligations 

22 arising under this Act,’’ after ‘‘section 113’’. 

23 (e) INFLUENCE OF MANAGEMENT DECISIONS.—Title 

24 I of the Emergency Economic Stabilization Act of 2008 


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1 (12 U.S.C. 5211 et seq.) is amended by adding at the end 

2 the following: 

3 ‘‘SEC. 137. INFLUENCE OF MANAGEMENT DECISIONS. 

4 ‘‘(a) DEFINITIONS.—For purposes of this section— 

5 ‘‘(1) the term ‘covered person’ means any per6 son who is an officer or employee (including a spe7 cial Government employee (as defined in section 

8 202(a) of title 18, United States Code)) of the exec9 utive branch of the United States (including any 

10 independent agency of the United States); and 

11 ‘‘(2) the term ‘significant management decision’ 

12 includes the appointment of senior executives or 

13 board members, business strategies relating to pro14 duction and manufacturing, plant closings, the relo15 cation of the headquarters of an entity, the modifica16 tion of labor contracts, and other financial decisions. 

17 ‘‘(b) INFLUENCE PROHIBITED.— 

18 ‘‘(1) IN GENERAL.—It shall be unlawful for any 

19 covered person to knowingly make, with the intent 

20 to influence, a communication regarding a signifi21 cant management decision of a recipient of assist22 ance under this title to any officer or employee of 

23 the recipient. 

24 ‘‘(2) CRIMINAL PENALTY.—Any covered person 

25 who violates paragraph (1) shall be fined under title 


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1 18, United States Code, imprisoned for not more 

2 than 1 year, or both. 

3 ‘‘(c) CIVIL ACTIONS.— 

4 ‘‘(1) IN GENERAL.—The Attorney General of 

5 the United States may bring a civil action in an ap6 propriate United States district court against any 

7 covered person to enforce subsection (b). 

8 ‘‘(2) CIVIL PENALTY.—Any covered person who, 

9 upon proof by a preponderance of the evidence, vio10 lates subsection (b) shall be subject to a civil penalty 

11 of not more than $50,000 for each violation. The 

12 imposition of a civil penalty under this paragraph 

13 shall not preclude any other criminal or civil statu14 tory, common law, or administrative remedy, which 

15 is available by law to the United States or any other 

16 person. 

17 ‘‘(3) ORDERS.—If the Attorney General of the 

18 United States has reason to believe that a covered 

19 person is engaging in conduct that violates sub20 section (b), the Attorney General may petition an 

21 appropriate United States district court for an order 

22 prohibiting the covered person from engaging in the 

23 conduct. The court may issue an order prohibiting 

24 the covered person from engaging in the conduct if 

25 the court finds that the conduct constitutes a violaVerDate Nov 24 2008 00:35 Jun 12, 2009 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1242.IS S1242

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1 tion of subsection (b). The filing of a petition under 

2 this paragraph shall not preclude any other remedy 

3 which is available by law to the United States or any 

4 other person.’’. 

5 (f) FEDERAL DEPOSIT INSURANCE CORPORATION.— 

6 Nothing in this Act may be construed to impede the ability 

7 of the Federal Deposit Insurance Corporation to maintain 

8 the stability of the banking system. 

9 SEC. 4. OVERSIGHT BY FINANCIAL STABILITY OVERSIGHT 

10 BOARD. 

11 Section 104(a) of the Emergency Economic Stabiliza12 tion Act of 2008 (12 U.S.C. 5214(a)) is amended— 

13 (1) in paragraph (2), by striking ‘‘and’’ at the 

14 end; 

15 (2) in paragraph (3), by striking the semicolon 

16 at the end and inserting ‘‘; and’’; and 

17 (3) by adding at the end the following: 

18 ‘‘(4) reviewing the implementation of section 3 

19 of the Government Ownership Exit Plan Act of 

20 2009.’’. 

21 SEC. 5. REPORTS REQUIRED. 

22 (a) REPORT ON FEDERAL GOVERNMENT OWNER23 SHIP.— 

24 (1) REPORTS REQUIRED.—The Secretary shall 

25 make (and shall publicly disclose) periodic reports 


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1 detailing any ownership interest held by the Federal 

2 Government, including any loan or loan guarantee 

3 made by the Board of Governors of the Federal Re4 serve System. 

5 (2) TIMING OF REPORTS.—The Secretary shall 

6 submit the reports under paragraph (1)— 

7 (A) not later than October 1, 2009; and 

8 (B) each quarter of the fiscal year there9 after. 

10 (b) REPORTS ON WINDING DOWN OR DIVEST11 MENT.— 

12 (1) REPORTS REQUIRED.—The Secretary shall 

13 submit to Congress periodic reports on the plans of 

14 the Secretary for compliance with this Act, including 

15 any plans to wind down or divest an ownership in16 terest. 

17 (2) TIMING OF REPORTS.—The Secretary shall 

18 submit the reports under paragraph (1)— 

19 (A) not later than April 1, 2010; and 

20 (B) each month thereafter until all owner21 ship interests are divested under section 

22 3(a)(2). 


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1 SEC. 6. PLAN FOR GOVERNMENT SPONSORED ENTER2 PRISES. 

3 Not later than 90 days after the date of enactment 

4 of this Act, the Secretary shall submit to Congress a re5 port describing a plan of the Secretary— 

6 (1) to end the conservatorship by the Federal 

7 Government of the Federal National Mortgage Asso8 ciation and the Federal Home Loan Mortgage Cor9 poration; and 

10 (2) to eliminate any form of direct ownership by 

11 the Federal Government of the Federal National 

12 Mortgage Association and the Federal Home Loan 

13 Mortgage Corporation. 

Æ 


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