I 
112TH CONGRESS 
2D SESSION 
H. R. 4009 
To prohibit Members of Congress, senior congressional staffers, and adminis-
tration executives from making certain purchases or sales of registered 
securities, futures, swaps, security futures products, security-based swaps, 
and options, to prohibit bonus payments to executives at Fannie Mae 
and Freddie Mac, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 9, 2012 
Mr. ISSA introduced the following bill; which was referred to the Committee 
on Financial Services, and in addition to the Committees on House Ad-
ministration and Oversight and Government Reform, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee con-
cerned 
A BILL 
To prohibit Members of Congress, senior congressional staff-
ers, and administration executives from making certain 
purchases or sales of registered securities, futures, swaps, 
security futures products, security-based swaps, and op-
tions, to prohibit bonus payments to executives at Fannie 
Mae and Freddie Mac, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. LIMITATIONS ON DISCRETION OVER INVEST-
MENTS IN REGISTERED SECURITIES. 
(a) IN GENERAL.—Members of Congress, senior con-
gressional staffers, and administration executives are pro-
hibited from the purchase or sale of registered securities, 
futures, swaps, security futures products, security-based 
swaps, and options on such securities, futures, and swaps, 
subject to exceptions for the purchase or sale of— 
(1) exchange traded funds, exchange traded 
notes, and mutual funds registered with the Securi-
ties and Exchange Commission that contain greater 
than 10 single name securities; 
(2) commodity-based swaps, futures, exchange 
traded funds and exchange traded notes; 
(3) security-based swaps or security futures 
products whose value is not primarily dependent on 
10 or fewer single name securities; 
(4) Treasury, State, and municipal securities; 
(5) options on any investments described under 
paragraphs (1) through (4); and 
(6) securities, security-based swaps, and secu-
rity futures products whose value is primarily de-
pendent on 10 or fewer single name securities, or 
options on such investments, subject to— 
(A) preapproval by the Securities and Ex-
change Commission; 
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(B) compliance with a written contract re-
lying on any of the affirmative defenses avail-
able under section 240.10b5–1(c)(1) of title 17, 
Code of Federal Regulations, where such writ-
ten contract is executed and delivered to the Se-
curities and Exchange Commission, or its des-
ignated agent, at least 30 days prior to the date 
of the first scheduled purchase or sale trans-
action; or 
(C) such purchase or sale being made on 
behalf of such person by a qualified blind trust 
(as defined under section 102(f)(3) of the Eth-
ics in Government Act of 1978), where notice of 
the execution of a blind trust agreement is pro-
vided to the Securities and Exchange Commis-
sion, or its designated agent, not later than 3 
days after executing such agreement. 
(b) PENALTY.—Any person who violates subsection 
(a) shall be subject to the provisions of section 240.10b5– 
1 of title 17, Code of Federal Regulations, relating to ma-
terial nonpublic information received in the course of em-
ployment. 
(c) DEFINITIONS.—For purposes of this section: 
(1) ADMINISTRATION EXECUTIVES.—The term 
‘‘administration executive’’ means— 
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(A) the President; 
(B) the Vice President; 
(C) any position in the executive branch 
the appointment to which is made by the Presi-
dent and requires advice and consent of the 
Senate; or 
(D) an officer or employee of the executive 
branch, including all Federal agencies, who, for 
at least 60 days, occupies a position for which 
the rate of basic pay is equal to or greater than 
120 percent of the minimum rate of basic pay 
payable for GS–15 of the General Schedule. 
(2) MEMBER OF CONGRESS.—The term ‘‘Mem-
ber of Congress’’ means a member of the Senate or 
House of Representatives, a Delegate to the House 
of Representatives, or the Resident Commissioner 
from Puerto Rico. 
(3) SENIOR
CONGRESSIONAL
STAFFER.—The 
term ‘‘senior congressional staffer’’ means an officer 
or employee of the legislative branch who, for at 
least 60 days, occupies a position for which the rate 
of basic pay is equal to or greater than 120 percent 
of the minimum rate of basic pay payable for GS– 
15 of the General Schedule. 
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(d) EFFECTIVE DATE.—This section shall take effect 
after the end of the 270-day period beginning on the date 
of the enactment of this Act. 
SEC. 2. LIMITATION ON BONUSES TO EXECUTIVES OF 
FANNIE MAE AND FREDDIE MAC. 
Notwithstanding any other provision in law, senior 
executives at the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Corporation are 
prohibited from receiving bonuses during any period of 
conservatorship for those entities on or after the date of 
enactment of this Act. 
Æ 
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