I 

111TH CONGRESS 

1ST SESSION H. R. 4118 

To prohibit the Federal Government from holding security interests, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 19, 2009 

Mr. KIRK (for himself and Mr. ROSKAM) introduced the following bill; which 

was referred to the Committee on Financial Services 

A BILL 

To prohibit the Federal Government from holding security 

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 ‘‘Taxpayer Investment 

5 Protection Act of 2009’’. 

6 SEC. 2. DEFINITION. 

7 For purposes of this Act, the following definitions 

8 shall apply: 

9 (1) OWNERSHIP INTEREST.—The term ‘‘owner10 ship interest’’ means an interest in a troubled asset 


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1 described in section 3(9)(B) of the Emergency Eco2 nomic Stabilization Act of 2008 (12 U.S.C. 

3 5202(a)(1)), as in effect on the day before the date 

4 of the enactment of this Act, that was purchased by 

5 the Secretary under section 101(a)(1) of such Act 

6 (12 U.S.C. 5211(a)(1)). 

7 (2) SECRETARY.—The term ‘‘Secretary’’ means 

8 the Secretary of the Treasury. 

9 SEC. 3. SALE OF FEDERAL CORPORATE PROPERTY. 

10 (a) DIVESTITURE.—Except as provided in subsection 

11 (b), the Secretary shall divest the Federal Government of 

12 any ownership interest not later than December 31, 2010. 

13 (b) CONFORMING AMENDMENT.—Section 3(9) of the 

14 Emergency Economic Stabilization Act of 2008 (12 

15 U.S.C. 5202(9)) is amended— 

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

17 the end and inserting a period; 

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

19 through ‘‘residential’’ in subparagraph (A) and in20 serting ‘‘means residential’’; and 

21 (3) by striking subparagraph (B). 

22 (c) DEPOSIT OF FUNDS.— 

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

24 Emergency Economic Stabilization Act of 2008 (12 


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1 U.S.C. 5225(a)(3)) is amended by striking ‘‘out2 standing at any one time’’. 

3 (2) DEPOSIT OF FUNDS INTO TREASURY.— 

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

5 of enactment of this Act, all repayments of obli6 gations arising under the Emergency Economic 

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

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

9 acquired by the Federal Government under that 

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

11 Treasury for reduction of the public debt, in ac12 cordance with section 106(d) of that Act (12 

13 U.S.C. 5216(d)), as amended by this sub14 section. 

15 (B) CONFORMING AMENDMENT.—Section 

16 106(d) of the Emergency Economic Stabiliza17 tion Act of 2008 (12 U.S.C. 5216(d)) is amend18 ed by inserting ‘‘, and repayments of obligations 

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

20 (d) FEDERAL DEPOSIT INSURANCE CORPORATION.— 

21 No provision of this Act may be construed so as to impede 

22 the ability of the Federal Deposit Insurance Corporation 

23 to maintain the stability of the banking system. 


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1 SEC. 4. OVERSIGHT BY FINANCIAL STABILITY OVERSIGHT 

2 BOARD. 

3 Section 104(a) of the Emergency Economic Stabiliza4 tion Act of 2008 (12 U.S.C. 5214(a)) is amended— 

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

6 end; 

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

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

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

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

11 of the Taxpayer Investment Protection Act of 

12 2009.’’. 

13 SEC. 5. REPORTS REQUIRED. 

14 (a) REPORTS ON WINDING DOWN OR DIVESTMENT

15 REQUIRED.—The Secretary shall submit to the Congress 

16 periodic reports on the plans of the Secretary for compli17 ance with this Act, providing detail on equity divestiture 

18 plans and return of capital for the following corporate in19 vestments: 

20 (1) Bank of America: $35,000,000,000 in notes 

21 and preferred stock. 

22 (2) Chrysler: $12,500,000,000 in common eq23 uity and notes. 

24 (3) General Motors: $49,500,000,000 in com25 mon and preferred equity, notes. 


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1 (4) Citigroup: $45,000,000,000 in common 

2 stock and notes. 

3 (5) AIG: $40,000,000,000 applied to acquire 

4 79.9 percent of equity, plus amounts outstanding on 

5 a $30,000,000,000 line of credit. 

6 (6) Hartford Financial Services: 

7 $3,400,000,000 in preferred stock. 

8 (7) Lincoln National Corporation: 

9 $950,000,000 in preferred stock. 

10 (8) GMAC: $884,000,000 in common equity. 

11 (b) TIMING OF REPORTS.—The Secretary shall sub12 mit the reports under subsection (a)— 

13 (1) not later than January 1, 2010; and 

14 (2) each month thereafter until all ownership 

15 interests are divested under section 3(a). 

Æ 


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