H.R.1575 - End Government Reimbursement of Excessive Executive Disbursements (End GREED) Act111th Congress (2009-2010)
Summary: H.R.1575 — 111th Congress (2009-2010)
Reported to House without amendment (03/24/2009)
(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)
End Government Reimbursement of Excessive Executive Disbursements (End GREED) Act - (Sec. 2) Declares that Congress elects to use its constitutional authority to: (1) establish a uniform law on bankruptcy that applies to entities that have received extraordinary financial assistance from the United States on or after September 1, 2008; and (2) authorize the Attorney General, after consultation with the Secretary of the Treasury, to seek recovery of previous excessive payments of compensation made by the entities after receiving such assistance, and limit excessive payments of compensation to be made by them.
(Sec. 3) Authorizes the Attorney General, after consultation with the Secretary of the Treasury, to review: (1) any employment contract made by an entity that received over $10 billion in specified federal financial assistance on or after September 1, 2008; and (2) any payment the entity made to an employee on or after such date.
Authorizes the Attorney General to commence a civil action for fraudulent transfer in U.S. district court to avoid (and recover) any such payment (including a payment under an employment contract), if the entity received less than a reasonably equivalent value in exchange for the payment and it: (1) was insolvent on the payment date, not taking into account the federal assistance it received; or (2) was engaged (or was about to engage) in business or a transaction for which property remaining in the recipient entity was an unreasonably small capital.
Authorizes the Attorney General to avoid any transfer of an interest of a recipient entity in property, or any obligation incurred by such entity, that is avoidable under applicable law by a creditor holding an unsecured claim against such entity.
Authorizes the Attorney General to commence a civil action also to limit the amount of compensation paid or payable on or after enactment of this Act by a recipient entity under an employment contract, if such compensation is greater than 10 times the mean amount of compensation paid or payable to the entity's nonmanagement employees during the calendar year.
(Sec. 4) Grants the Attorney General subpoena authority to compel: (1) attendance and testimony of witnesses; and (2) production of documentary evidence pertinent to implementation of this Act, including the circumstances surrounding any employment contract or payment of compensation.
Makes such a subpoena enforceable by court order in the case of contumacy or refusal to obey.
(Sec. 5) States that this Act shall not be construed to have any impact on a recipient entity, its financial status, or the financial status of its creditors other than: (1) limiting compensation paid or payable under employment contracts; or (2) providing for the recovery of previously paid compensation.