I 
111TH CONGRESS 
1ST SESSION H. R. 3232 
To amend the Emergency Economic Stabilization Act of 2008 to require 
certain warrants held by the Secretary of the Treasury to be sold at 
public auction upon the repayment of the associated assistance provided 
under the Troubled Asset Relief Program. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 16, 2009 
Ms. KILROY (for herself, Mr. SHERMAN, Ms. SUTTON, Ms. FUDGE, Mr. 
BOCCIERI, Ms. SPEIER, and Mr. GRAYSON) introduced the following bill; 
which was referred to the Committee on Financial Services 
A BILL 
To amend the Emergency Economic Stabilization Act of 
2008 to require certain warrants held by the Secretary 
of the Treasury to be sold at public auction upon the 
repayment of the associated assistance provided under 
the Troubled Asset Relief Program. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Provide a Return on 
Financial Investment for the Taxpayer Act of 2009’’ or 
as the ‘‘PROFIT Act of 2009’’. 
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SEC. 2. PURPOSE. 
The purpose of this Act is to maximize the American 
taxpayers’ return on its investment in troubled financial 
institutions through the Troubled Asset Relief Program 
(TARP). 
SEC. 3. FINDINGS. 
The Congress finds the following: 
(1) During the wake of the economic crisis in 
the fall of 2008, American taxpayers assumed an 
enormous financial risk when they bailed out trou-
bled financial institutions. 
(2) To compensate for the risk assumed by 
American taxpayers, banks that received TARP 
funds were required to give the Department of 
Treasury warrants for the future purchase of com-
mon shares, allowing American taxpayers an oppor-
tunity to profit from the possible upside of their ini-
tial equity investment. 
(3) The price at which the warrants are sold is 
critical as the warrants represent the only oppor-
tunity for American taxpayers to benefit from the 
risk they assumed in bailing out troubled financial 
institutions. 
(4) However, in a July 10, 2009, oversight re-
port, the TARP Congressional Oversight Panel 
(COP) found that the process used by the Depart-
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ment of Treasury to allow the initial 11 banks to re-
purchase their warrants did so at just 66 percent of 
the actual value of the warrants. If these warrants 
had been sold for their current market value, Amer-
ican taxpayers would have recovered $10 million 
more. 
(5) Furthermore, COP found that if the De-
partment of Treasury uses this same approach to re-
purchase all remaining outstanding warrants, the 
shortfall to taxpayers could be as much as $2.7 bil-
lion. 
(6) Finally, COP found that the Department of 
Treasury would be more likely to maximize taxpayer 
returns if it sold the warrants through an open, pub-
lic auction, as an auction would allow competitive 
market pressures in the bidding process to push bids 
higher, thus maximizing the American taxpayers 
overall return on its initial investment. 
SEC. 4. SALE OF WARRANTS THROUGH A PUBLIC AUCTION. 
Section 111 of the Emergency Economic Stabilization 
Act of 2008 (12 U.S.C. 5221) is amended— 
(1) by redesignating subsection (h) as sub-
section (i); and 
(2) by inserting after subsection (g) the fol-
lowing new subsection: 
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‘‘(h) SALE OF WARRANTS THROUGH A PUBLIC AUC-
TION.— 
‘‘(1) IN GENERAL.—Each time a financial insti-
tution makes a repayment of assistance provided 
under this title, the Secretary shall sell warrants as-
sociated with such assistance through a public auc-
tion. 
‘‘(2) 
EXCEPTION.—The 
requirement 
under 
paragraph (1) shall not apply to warrants associated 
with a repayment made by a financial institution 
that has received less than $250,000,000 of assist-
ance under this title.’’. 
Æ 
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