Johanns Favors Reining In Government Ownership Of Private Companies

Press Release

Senator Johanns will cast his vote later today in favor of amendments that would rein in government involvement in private business. Johanns co-sponsored the Government Ownership Exit Plan Act, offered by Senator John Thune (R-SD) that would require the federal government to withdraw ownership of all private companies by July 2010. Johanns also supports a measure sponsored by Senator David Vitter (R-LA) that would disallow any further money from the Troubled Asset Relief Program (TARP) after December 31, 2009. Both are expected to be voted on tonight as amendments to the Cash for Clunkers legislation.

"As of now, the Administration has no exit strategy for all of the federal government's involvement in private entities," Johanns said. "I can't imagine that any of my colleagues think it is a good idea to have a long-term stake in General Motors or any other company. At some point we are going to have to answer to the American people on this and return to governing, not meddling in private business and I believe that time is now."

Highlights of the amendments:
• Sets a deadline of July 1, 2010 for withdrawal of the federal government from ownership of private companies.
• If the withdrawal would have a significant adverse impact on taxpayers or if the withdrawal at that time would prohibit the government from recovering the cost of the investment, the deadline could be extended by six or twelve months.
• The federal government would be prohibited from making or unduly influencing management decisions of private companies such as appointing senior executives and board members, closing plants and other facilities, modifying labor contracts, or influencing other financial decisions of a company.
• Prohibits the Secretary of the Treasury from making any further TARP disbursements after December 31, 2009.

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