I 111th CONGRESS 1st Session H. R. 4118 IN THE HOUSE OF REPRESENTATIVES November 19, 2009 Mr. Kirk (for himself and Mr. Roskam) introduced the following bill; which was referred to the Committee on Financial Services A BILL To prohibit the Federal Government from holding security interests, and for other purposes.

1.

Short title

This Act may be cited as the Taxpayer Investment Protection Act of 2009.

2.

Definition

For purposes of this Act, the following definitions shall apply: (1)

Ownership interest

The term ownership interest means an interest in a troubled asset described in section 3(9)(B) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5202(a)(1)), as in effect on the day before the date of the enactment of this Act, that was purchased by the Secretary under section 101(a)(1) of such Act (12 U.S.C. 5211(a)(1)). (2)

Secretary

The term Secretary means the Secretary of the Treasury.

3.

Sale of Federal corporate property

(a)

Divestiture

Except as provided in subsection (b), the Secretary shall divest the Federal Government of any ownership interest not later than December 31, 2010. (b)

Conforming amendment

Section 3(9) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5202(9)) is amended— (1)in subparagraph (A), by striking ; and at the end and inserting a period; (2)by striking means— and all that follows through residential in subparagraph (A) and inserting means residential; and (3)by striking subparagraph (B). (c)

Deposit of funds

(1)

In general

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. (2)

Deposit of funds into treasury

(A)

In general

On and after the date of enactment of this Act, all repayments of obligations arising under the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201 et seq.), and all proceeds from the sale of assets acquired by the Federal Government under that Act, shall be paid into the general fund of the Treasury for reduction of the public debt, in accordance with section 106(d) of that Act (12 U.S.C. 5216(d)), as amended by this subsection. (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. (d)

Federal Deposit Insurance Corporation

No provision of this Act may be construed so as to impede the ability of the Federal Deposit Insurance Corporation to maintain the stability of the banking system.

4.

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— (1)in paragraph (2), by striking and at the end; (2)in paragraph (3), by striking the semicolon at the end and inserting ; and; and (3)by adding at the end the following: (4)reviewing the implementation of section 3 of the Taxpayer Investment Protection Act of 2009. .

5.

Reports required

(a)

Reports on winding down or divestment required

The Secretary shall submit to the Congress periodic reports on the plans of the Secretary for compliance with this Act, providing detail on equity divestiture plans and return of capital for the following corporate investments: (1)Bank of America: $35,000,000,000 in notes and preferred stock. (2)Chrysler: $12,500,000,000 in common equity and notes. (3)General Motors: $49,500,000,000 in common and preferred equity, notes. (4)Citigroup: $45,000,000,000 in common stock and notes. (5)AIG: $40,000,000,000 applied to acquire 79.9 percent of equity, plus amounts outstanding on a $30,000,000,000 line of credit. (6)Hartford Financial Services: $3,400,000,000 in preferred stock. (7)Lincoln National Corporation: $950,000,000 in preferred stock. (8)GMAC: $884,000,000 in common equity. (b)

Timing of reports

The Secretary shall submit the reports under subsection (a)— (1)not later than January 1, 2010; and (2)each month thereafter until all ownership interests are divested under section 3(a).