~ Bill creates private market trust for TARP investments, sets end-date for gov’t ownership ~
Jun 22 2009
WASHINGTON, D.C. – U.S. Senator Mark R. Warner (D-VA) spoke on the Senate floor today about bipartisan legislation he has introduced with Senator Bob Corker (R-TN) that will maximize returns of taxpayer investments into TARP(Troubled Asset Relief Program)assisted institutions. The bill provides for a responsible exitstrategy from government ownership of TARP-recipient companies, such as AIG, Citigroup, and General Motors.
“American taxpayers deserve to have their investments managed in a way that rewards the enormous risk we took in helping these institutions,” said Senator Warner. “The bipartisan legislation that Senator Corker and I propose will set parameters so we can take these investments out of the federal government’s hands and ensure maximum returns.”
The TARP Recipient Ownership Trust Act of 2009 will move any government ownership stakes in private companies greater than 20 percent (which, by fall 2009, will include AIG, Citigroup, and General Motors) into a newly created Limited Liability Corporation (LLC).
The bill will require taxpayer ownership of TARP-assisted institutions to be managed in the private sector by managers who have been successful in the private market in order to maximize the return on investments.
The trust that will be managed by three independent, non-political trustees, appointed by the President, with the objective of looking at TARP-recipient companies with fiduciary responsibility to the taxpayers.
The bill also directs the trustees to liquidate the government’s interests by December 24, 2011, but stipulates that if the trustees feel liquidation is not in the best interest of taxpayers, they can come back to Congress at that time with their alternative recommendation.