Jun 23 2009
Senator Warner spoke on the Senate floor yesterday about bipartisan legislation he has introduced with Tennessee Senator Bob Corker that will maximize returns on taxpayer investments into institutions that have received government assistance.
The bill provides a responsible exit strategy from government ownership from companies that have received government bail-outs, such as AIG, Citigroup, and General Motors, he said:
“American taxpayers deserve to have their investments managed in a way that rewards the enormous risk we took in helping these institutions. 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.”
Here is what the TARP Recipient Ownership Trust Act of 2009 will do:
- Out of government control: Government ownership stakes in more that 10 percent of a private company -- which, by fall 2009, will include AIG, Citigroup, and General Motors – will move into a newly created Limited Liability Corporation (LLC).
- Private sector management: This trust fund will be managed in the private sector by managers who have been successful in the private market in order to maximize the return on investments.
- Maximize Profits: 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.
- End-date: 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.
Here is the Senator's floor statement. Click here to read the prepared text.