Support John's bill to end government ownership of private entities acquired under the TARP program.
The government has taken unprecedented actions over the past 15 months to stabilize the economy, including taking direct ownership stakes in private companies. This creates a dangerous conflict of interest between the federal government and the private sector. The government shouldn’t be an owner of companies it regulates in the private marketplace.
Ends government ownership of private companies by:
Preventing the U.S. Treasury from purchasing additional ownership stakes in private companies in any form, including preferred stock, common stock or warrants.
Requiring the U.S. Treasury to sell any ownership stake of private entities by July 1, 2010.
Requiring the Secretary of the Treasury to submit a plan within 90 days for how it will end the conservatorship of Fannie Mae and Freddie Mac and end government ownership of those entities.
Protects taxpayers by:
Requiring that revenue from the sale of assets be dedicated to debt reduction.
Allowing the Secretary of the Treasury to hold current assets for up to one additional year, IF the assets are determined to be undervalued AND if there is a reasonable expectation that the assets will increase to the original purchase value in the near future.
Prohibiting the U.S. Treasury from holding any direct ownership in private companies beyond July 1, 2011, without additional authority granted by Congress.
Protects private sector management decisions and prevents conflicts of interest by:
Prohibiting the federal government from influencing management decisions of private companies in which it currently holds ownership by appointing senior executives and board members, closing plants, modifying labor contracts, or influencing other financial decisions of the companies.
Increases transparency and accountability by:
Requiring Treasury to report to Congress any government-held ownership stake in a private entity and any loans or loan guarantees made by the Federal Reserve.
Providing that the government ownership divestiture process will be overseen by the TARP oversight board and requiring Treasury to report to Congress on the progress of the divestiture process.
