I 

111TH CONGRESS 

1ST SESSION H. R. 2904 

To prohibit the Federal Government from holding ownership interests, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 16, 2009 

Mr. MORAN of Kansas introduced the following bill; which was referred to the 

Committee on Financial Services 

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 

10 3(9)(B) of the Emergency Economic Stabilization 


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

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

3 that was purchased by the Secretary under section 

4 101(a)(1) of such Act (12 U.S.C. 5211(a)(1)); and 

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

6 of the Treasury. 

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

8 (a) PROHIBITION ON FEDERAL GOVERNMENT HOLD9 ING OWNERSHIP INTERESTS.— 

10 (1) IN GENERAL.—Beginning on the date of en11 actment of this Act, the Federal Government may 

12 not acquire, directly or indirectly, any ownership in13 terest. 

14 (2) DIVESTITURE.—Except as provided in sub15 section (b), the Secretary shall divest the Federal 

16 Government of any ownership interest not later than 

17 July 1, 2010. 

18 (b) LIMITED AUTHORITY.— 

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

20 the Secretary may hold an ownership interest with 

21 respect to a particular entity for a period of not 

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

23 the Secretary submits a report to Congress with re24 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, the 

5 following definitions shall apply: 

6 ‘‘(1) COVERED PERSON.—The term ‘covered 

7 person’ means any person who is an officer or em8 ployee (including a special Government employee (as 

9 defined in section 202(a) of title 18, United States 

10 Code)) of the executive branch of the United States 

11 (including any independent agency of the United 

12 States). 

13 ‘‘(2) SIGNIFICANT MANAGEMENT DECISION.— 

14 The term ‘significant management decision’ includes 

15 the appointment of senior executives or board mem16 bers, business strategies relating to production and 

17 manufacturing, plant closings, the relocation of the 

18 headquarters of an entity, the modification of labor 

19 contracts, and other financial decisions. 

20 ‘‘(b) INFLUENCE PROHIBITED.— 

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

22 covered person to knowingly make, with the intent 

23 to influence, a communication regarding a signifi24 cant management decision of a recipient of assistVerDate Nov 24 2008 23:05 Jun 17, 2009 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2904.IH H2904

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1 ance under this title to any officer or employee of 

2 the recipient. 

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

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

5 18, United States Code, imprisoned for not more 

6 than 1 year, or both. 

7 ‘‘(c) CIVIL ACTIONS.— 

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

9 the United States may bring a civil action in an ap10 propriate United States district court against any 

11 covered person to enforce subsection (b). 

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

13 upon proof by a preponderance of the evidence, vio14 lates subsection (b) shall be subject to a civil penalty 

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

16 imposition of a civil penalty under this paragraph 

17 shall not preclude any other criminal or civil statu18 tory, common law, or administrative remedy, which 

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

20 person. 

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

22 United States has reason to believe that a covered 

23 person is engaging in conduct that violates sub24 section (b), the Attorney General may petition an 

25 appropriate United States district court for an order 


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1 prohibiting the covered person from engaging in the 

2 conduct. The court may issue an order prohibiting 

3 the covered person from engaging in the conduct if 

4 the court finds that the conduct constitutes a viola5 tion of subsection (b). The filing of a petition under 

6 this paragraph shall not preclude any other remedy 

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

8 other person.’’. 

9 (f) FEDERAL DEPOSIT INSURANCE CORPORATION.— 

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

11 of the Federal Deposit Insurance Corporation to maintain 

12 the stability of the banking system. 

13 SEC. 4. OVERSIGHT BY FINANCIAL STABILITY OVERSIGHT 

14 BOARD. 

15 Section 104(a) of the Emergency Economic Stabiliza16 tion Act of 2008 (12 U.S.C. 5214(a)) is amended— 

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

18 end; 

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

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

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

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

23 of the Government Ownership Exit Plan Act of 

24 2009.’’. 


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1 SEC. 5. REPORTS REQUIRED. 

2 (a) REPORT ON FEDERAL GOVERNMENT OWNER3 SHIP.— 

4 (1) REPORTS REQUIRED.—The Secretary shall 

5 make (and shall publicly disclose) periodic reports 

6 detailing any ownership interest held by the Federal 

7 Government, including any loan or loan guarantee 

8 made by the Board of Governors of the Federal Re9 serve System. 

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

11 submit the reports under paragraph (1)— 

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

13 (B) each quarter of the fiscal year there14 after. 

15 (b) REPORTS ON WINDING DOWN OR DIVEST16 MENT.— 

17 (1) REPORTS REQUIRED.—The Secretary shall 

18 submit to Congress periodic reports on the plans of 

19 the Secretary for compliance with this Act, including 

20 any plans to wind down or divest an ownership in21 terest. 

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

23 submit the reports under paragraph (1)— 

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


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1 (B) each month thereafter until all owner2 ship interests are divested under section 

3 3(a)(2). 

4 SEC. 6. PLAN FOR GOVERNMENT SPONSORED ENTER5 PRISES. 

6 Not later than 90 days after the date of enactment 

7 of this Act, the Secretary shall submit to Congress a re8 port describing a plan of the Secretary— 

9 (1) to end the conservatorship by the Federal 

10 Government of the Federal National Mortgage Asso11 ciation and the Federal Home Loan Mortgage Cor12 poration; and 

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

14 the Federal Government of the Federal National 

15 Mortgage Association and the Federal Home Loan 

16 Mortgage Corporation. 

Æ 


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