S.Amdt. 3817

SA 3817. Mr. WHITEHOUSE submitted an amendment intended to be
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the
financial stability of the United States by improving accountability
and transparency in the financial system, to end ``too big to fail'',
to protect the American taxpayer by ending bailouts, to protect
consumers from abusive financial services practices, and for other
purposes; which was ordered to lie on the table; as follows:

On page 1171, between lines 5 and 6, insert the following:

SEC. 989C. PREVENTING BLANK CHECK BAILOUTS.

(a) Short Title.--This section may be cited as the
``Preventing Blank Check Bailouts Act of 2010''.
(b) Definitions.--In this section:
(1) Covered entity.--The term ``covered entity''--
(A) means a corporation, partnership, association, trust,
firm, joint stock company, or other business entity that--
(i) has outstanding not less than $10,000,000,000 in
Government assistance; or
(ii) receives Government assistance for the protection of
the public; and
(B) does not include a State, a political subdivision of a
State, or an entity owned or controlled by a State or a
political subdivision of a State.
(2) Executive compensation.--The term ``executive
compensation'' includes wages, salary, deferred compensation,
benefits, retirement arrangements, options, bonuses, office
fixtures, goods and other property, travel, entertainment or
vacation expenses, and forms of compensation, obligation, or
expense that are not routinely provided to all other
employees of a covered entity.
(3) Government assistance.--The term ``Government
assistance'' means any grants, gifts, loans, equity or debt
purchases, or other investments by the United States made or
provided to prevent the insolvency of the recipient for the
protection of the public.
(4) Taxpayer protection action.--The term ``taxpayer
protection action'' means a civil action brought under
subsection (c)(1).
(c) Taxpayer Protection Actions.--
(1) In general.--The district courts of the United States
shall have jurisdiction of a civil action brought by the
Attorney General of the United States against a covered
entity seeking the abrogation of contracts of the covered
entity.
(2) Consultation.--The Attorney General shall consult with
the President and the Secretary of the Treasury before
bringing a taxpayer protection action.
(3) Remedies.--
(A) In general.--In a taxpayer protection action, the court
may abrogate contracts of the covered entity, including
contracts relating to executive compensation, in accordance
with subparagraph (B), if the court determines that a covered
entity--
(i) would have become insolvent if the covered entity had
not received the Government assistance outstanding to or in
the covered entity; or
(ii) would become insolvent if the covered entity does not
receive Government assistance.
(B) Contracts to be abrogated.--In evaluating the contracts
of a covered entity under this paragraph, a court shall apply
a standard to the contracts that seeks to approximate the
outcome that would have resulted for the parties to the
contract if the covered entity--
(i) had not received the Government assistance; and
(ii) had filed a petition under chapter 7 of title 11,
United States Code.
(4) Individuals and entities affected.--If the property
rights of an individual or entity will be affected by a
taxpayer protection action, the individual or entity may--
(A) intervene as a matter of right in the taxpayer
protection action; and
(B) upon intervening, assert any claim relating to the
property rights of the individual or entity, including a
claim--
(i) relating to rights protected under the due process
clause of the fifth amendment to the Constitution of the
United States or the due process clause of section 1 of the
14th

[[Page S3195]]

amendment to the Constitution of the United States; or
(ii) that the covered entity is not insolvent or would not
have become insolvent if the covered entity had not received
the Government assistance.
______