Government Ownership Exit Plan! John Thune standing up to the Socialist Government!

PRESS RELEASE 06/11/2009FOR IMMEDIATE RELEASE Contact: Kyle Downey Thune Introduces Government Ownership Exit Plan --Legislation Would Set End Date for Government Ownership of Private Companies-- WASHINGTON, DC – U.S. Senator John Thune today will introduce the Government Ownership Exit Plan Act, a bill that would require the federal government to end its ownership of private entities acquired under the Troubled Asset Relief Program (TARP) by July 1, 2010. The bill also prohibits the future acquisition of new or additional ownership interests in private firms through the use of TARP funds and prevents the federal government from making management decisions in private companies in which it has an ownership interest. “Thanks to the federal government’s unprecedented intervention in the private sector, the president has become a de facto CEO managing large segments of our economy and Congress is acting as a 535 member board of directors,” said Thune. “Having the federal government call the shots for private industry is bad for business, bad for the economy, and bad for taxpayers. Government needs to get out of the business of owning American companies, and this legislation establishes a reasonable end date for government ownership and provides a clear exit strategy for taxpayers.” The Government Ownership Exit Plan would require the sale of any ownership interest such as warrants, preferred stock, or common stock and apply any revenue from the sale of those assets to the reduction of the national debt. The plan would also prohibit the federal government from making or unduly influencing management decisions of private companies such as appointing senior executives and board members. Over the past year, the federal government has acquired direct ownership in hundreds of private companies, including two car manufacturers, multiple financial institutions, and over 500 banks. “Government ownership and control of private business crowds out investment, innovation, job creation, and diminishes the entrepreneurial spirit that made America an economic superpower by instead adding hundreds of billions of dollars to our national debt. Elected officials and government bureaucrats are not qualified to run American businesses.” Senator Thune’s legislation gives the Treasury Secretary the authority to delay divestiture for up to one year if there is a reasonable chance the assets will appreciate to the original purchase value in the near future. The Treasury is also required to report to Congress and provide detailed information on existing government ownership interests in private entities and on any loans or loan guarantees made by the Federal Reserve. The bill is currently co-sponsored by Senators John Barrasso (R-WY), Tom Coburn (R-OK), John Cornyn (R-TX), James Inhofe (R-OK), Mike Johanns (R-NE), John Kyl (R-AZ), Mitch McConnell (R-KY), and David Vitter (R-LA). Senator Thune also recently introduced the Freedom from Government Competition Act (S.1167), a bill that would require federal agencies to rely on private businesses when providing goods and services that are readily available in the private sector. The federal government has identified that roughly 850,000 federal employees perform jobs that can be classified as “commercial in nature,” which means in many instances the federal government is competing directly against main street businesses. ### Contact: Kyle Downey (202) 228-5939 Government Ownership Exit Plan Government needs to get out of the business of owning American businesses. · Over the past 15 months, the federal government has taken unprecedented actions to acquire direct ownership stakes in hundreds of private companies – two car manufacturers, multiple financial institutions and 532 banks. · Government ownership of private businesses exposes the American taxpayer to significant liabilities and creates a dangerous conflict of interest between politics, government bureaucracy and the private sector. Government control of private business is bad for our economy. · Government control of private business crowds out investment, innovation, job creation and the entrepreneurial spirit that made America an economic superpower. · Government ownership of private business adds hundreds of billions of dollars to our dangerously high debt and record deficits. Government bureaucrats should not dictate management decisions. · Government bureaucrats are not qualified to run American businesses and should not be making vital decisions that impact everything from paychecks to the cost of goods and services. · Bureaucratic micromanagement of private industry has failed several times over the past century and is not suited for the American economy. Restore Private Ownership of Private Companies STEP 1: Upon enactment of the legislation, the Treasury may not purchase any additional ownership stake of private entities such as warrants, preferred stock, or common stock purchased through TARP. STEP 2: The legislation would require the Treasury to sell any ownership stake of a private entity by July 1, 2010. Revenue from the sale of TARP assets must be used for debt reduction. STEP 3: If the Treasury Secretary determines the assets are undervalued AND there is a reasonable expectation that the assets will increase to their original purchase value, the Secretary may hold the assets for up to one additional year. STEP 4: Beyond July 1, 2011, the Treasury Secretary may not hold any direct ownership of private companies unless Congress grants additional authority. Reprivatize Fannie Mae and Freddie Mac · Since enactment of the Housing and Economic Recovery Act of 2008, the government has placed Fannie and Freddie in conservatorship and has purchased $85 billion of preferred stock in the two companies. · Within 90 days of enactment, the Secretary of Treasury must submit a plan to Congress that describes how the government will end the conservatorship of Fannie and Freddie, including a plan to unwind government ownership. Protect Private Sector Management Decisions · Upon enactment of this legislation, the federal government may not influence management decisions of private companies such as appointing senior executives and board members, closing plants, modifying labor contracts, or influencing other financial decisions of a company. Enhance Transparency and Accountability of Economic Stabilization · Treasury must report to Congress detailing any government-held ownership stake in a private entity and any loan or loan guarantee made by the Federal Reserve. · The Treasury is required to report to Congress on the progress of the divestiture process, which will be overseen by the TARP oversight board. ###

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