S.Amdt. 2305

1. Adds SECTION ___. GOVERNMENT OWNERSHIP EXIT PLAN wherever appropriate

   Adds a section

   Inserted: SECTION ___. GOVERNMENT OWNERSHIP EXIT PLAN.

   Inserted: (a) Government Ownership Exit Plan.--Title I of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201 et seq.) is amended by adding at the end the following:

   Inserted: "SEC. 137. GOVERNMENT OWNERSHIP EXIT PLAN.

   Inserted: "(a) Definition.--In this section, the term 'ownership interest' means an interest in a troubled asset described in section 3(9)(B), as in effect on the day before the date of enactment of this section, that was purchased by the Secretary under section 101(a)(1).

   Inserted: "(b) Re-Privatization of Private Entities.--

   Inserted: "(1) Prohibition on federal government holding ownership interests.--

   Inserted: "(A) In general.--Beginning on the date of enactment of this section, the Federal Government may not acquire, directly or indirectly, any ownership interest.

   Inserted: "(B) Divestiture.--Except as provided in paragraph (2), the Secretary shall divest the Federal Government of any ownership interest not later than 1 year after the date of enactment of this section.

   Inserted: "(2) Limited authority.--

   Inserted: "(A) In general.--Beginning 1 year after the date of enactment of this section, the Secretary may hold an ownership interest with respect to a particular entity for a period of not more than 6 months if, not later than 1 year after the date of enactment of this section, the Secretary submits a report to Congress with respect to that entity stating that--

   Inserted: "(i) compliance with paragraph (1)(B) with respect to such entity would have a significant adverse impact on the taxpayers of the United States; and

   Inserted: "(ii) there is a reasonable expectation that a waiver of paragraph (1)(B) would allow the Secretary to recover the cost to the Federal Government of acquiring such ownership interest.

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   Inserted: "(B) Single renewal.--The Secretary may renew an extension under subparagraph (A) for a single period of not more than 6 months, if the Secretary submits to Congress a report stating that the conditions described in clauses (i) and (ii) of subparagraph (A) still exist with respect to the subject ownership interest.

   Inserted: "(c) Deposit of Funds Into Treasury.--On and after the date of enactment of this section, all repayments of obligations arising under this Act, and all proceeds from the sale of assets acquired by the Federal Government under this Act, shall be paid into the general fund of the Treasury for reduction of the public debt, in accordance with section 106(d).

   Inserted: "(d) Reports Required.--

   Inserted: "(1) Report on federal government ownership.--

   Inserted: "(A) Reports required.--The Secretary shall make (and shall publicly disclose) periodic reports detailing any ownership interest held by the Federal Government, including any loan or loan guarantee made by the Board.

   Inserted: "(B) Timing of reports.--The Secretary shall submit the reports under subparagraph (A)--

   Inserted: "(i) not later than 3 months after the date of enactment of this section; and

   Inserted: "(ii) each quarter of the fiscal year thereafter.

   Inserted: "(2) Reports on winding down or divestment.--

   Inserted: "(A) Reports required.--The Secretary shall submit to Congress periodic reports on the plans of the Secretary for compliance with this section, including any plans to wind down or divest an ownership interest.

   Inserted: "(B) Timing of reports.--The Secretary shall submit the reports under subparagraph (A)--

   Inserted: "(i) not later than 6 months after the date of enactment of this section; and

   Inserted: "(ii) each month thereafter until all ownership interests are divested under subsection (b)(1)(B).

   Inserted: "(e) Plan for Government Sponsored Enterprises.--Not later than 90 days after the date of enactment of this section, the Secretary shall submit to Congress a report describing a plan of the Secretary--

   Inserted: "(1) to end the conservatorship by the Federal Government of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation; and

   Inserted: "(2) to eliminate any form of direct ownership by the Federal Government of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.

   Inserted: "(f) Federal Deposit Insurance Corporation.--Nothing in this section may be construed to impede the ability of the Corporation to maintain the stability of the banking system.

   Inserted: "SEC. 138. INFLUENCE OF MANAGEMENT DECISIONS.

   Inserted: "(a) Definitions.--For purposes of this section--

   Inserted: "(1) the term 'covered person' means any person who is an officer or employee (including a special Government employee (as defined in section 202(a) of title 18, United States Code)) of the executive branch of the United States (including any independent agency of the United States); and

   Inserted: "(2) the term 'significant management decision' includes the appointment of senior executives or board members, business strategies relating to production and manufacturing, plant closings, the relocation of the headquarters of an entity, the modification of labor contracts, and other financial decisions.

   Inserted: "(b) Influence Prohibited.--

   Inserted: "(1) In general.--It shall be unlawful for any covered person to knowingly make, with the intent to influence, a communication regarding a significant management decision of a recipient of assistance under this title to any officer or employee of the recipient.

   Inserted: "(2) Criminal penalty.--Any covered person who violates paragraph (1) shall be fined under title 18, United States Code, imprisoned for not more than 1 year, or both.

   Inserted: "(c) Civil Actions.--

   Inserted: "(1) In general.--The Attorney General of the United States may bring a civil action in an appropriate United States district court against any covered person to enforce subsection (b).

   Inserted: "(2) Civil penalty.--Any covered person who, upon proof by a preponderance of the evidence, violates subsection (b) shall be subject to a civil penalty of not more than $50,000 for each violation. The imposition of a civil penalty under this paragraph shall not preclude any other criminal or civil statutory, common law, or administrative remedy, which is available by law to the United States or any other person.

   Inserted: "(3) Orders.--If the Attorney General of the United States has reason to believe that a covered person is engaging in conduct that violates subsection (b), the Attorney General may petition an appropriate United States district court for an order prohibiting the covered person from engaging in the conduct. The court may issue an order prohibiting the covered person from engaging in the conduct if the court finds that the conduct constitutes a violation of subsection (b). The filing of a petition under this paragraph shall not preclude any other remedy which is available by law to the United States or any other person.".

   Inserted: (b) Conforming Amendments.--

   Inserted: (1) Definitions.--Section 3(9) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5202(9)) is amended--

   Inserted: (A) in subparagraph (A), by striking "; and" at the end and inserting a period;

   Inserted: (B) by striking "means--" and all that follows through "residential" in subparagraph (A) and inserting "means residential"; and

   Inserted: (C) by striking subparagraph (B).

   Inserted: (2) Oversight by financial stability oversight board.--Section 104(a) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5214(a)) is amended--

   Inserted: (A) in paragraph (2), by striking "and" at the end;

   Inserted: (B) in paragraph (3), by striking the semicolon at the end and inserting "; and"; and

   Inserted: (C) by adding at the end the following:

   Inserted: "(4) reviewing the implementation of sections 137 and 138.".

   Inserted: (3) Deposit of funds.--

   Inserted: (A) Authority to purchase.--Section 115(a)(3) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225(a)(3)) is amended by striking "outstanding at any one time".

   Inserted: (B) Conforming amendment.--Section 106(d) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5216(d)) is amended by inserting ", and repayments of obligations arising under this Act," after "section 113".

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As printed