Pension Benefit Guaranty Corp. Switched To Stocks Right Before Collapse

The Boston Globe:

WASHINGTON - Just months before the start of last year's stock market collapse, the federal agency that insures the retirement funds of 44 million Americans departed from its conservative investment strategy and decided to put much of its $64 billion insurance fund into stocks.

Switching from a heavy reliance on bonds, the Pension Benefit Guaranty Corporation decided to pour billions of dollars into speculative investments such as stocks in emerging foreign markets, real estate, and private equity funds.

Read the whole story: The Boston Globe

Comments

[mudshark12]

I can't believe the insane stupidity of PBGC to gamble with other peoples hard earned money. Why isn't someone jailed over this crap? I guess when one misappropriates BILLIONS people are just too stunned by the gross audacity of the crime to react properly.

[marignymitch]

Because Junior failed in giving our Social Security money to his gambling friends on Wall Street this was a pretty good (and successful) second option. Congrats again to the thieves in his administration and co-conspirators on Wall Street.

I'm reminded of Shakespeare. 'The evil that men do lives after them.'

[SamKnause]

I have not seen this story on any news channels. Is it being hidden on purpose? I would have thought this story would have been number one topic for quite a few days. It was on front page of Huffo for a short time yesterday and then it disappeared. I guess the news outlets think the country can't take any more stories that will cause outrage. I thought Jon Stewart would have mentioned it but he didn't, and none of the late show hosts mentioned it either. This is a huge story and needs to be everywhere. Give Huffo credit for showing it!!!

[StevieRae]

Another example of how Bush permeated our government by placing people in charge of so many agencies and departments who were simply loyal to him and his ideology and totally incompetent.

We have yet to feel effects from the very successful placement of over 100 Regent Univ. graduates in all areas of our government (Pat Robertson's sponsored law school).

It's not unlike a ticking time bomb as all these irresponsible examples of a orchestrated take-overs of our government come to light.

[pros54]

Smells like a behind the scene bail out attempt by buddies.

[loki]

just more to make us wonder if this isnt a very carefully planned transfer of wealth in America to make us into the Ivy Greed dreamland of Masters and Surfs.

[RRG64]

wonder? this is just more direct evidence.

[VictoriaP]

A PIG N LIPSTICK-The news of yet another theft of taxpayer dollars through Pension Benefit Guaranty sham investments should be another nail in the coffin of the bush/cheney mob rule. While I know that president O has a lot on his plate, I am becoming completely disheartened with each day that passes that he gives billions of bailout dollars and not indictments to wall street crooks and bush administration mobsters. i would much rather he uses this term to shine a bright light on every possible corner of wrongdoing that he can find.

I am becoming disappointed with Obama with each passing day and hope that he has some amazing strategy up his sleeve to bring the crooks to justice and stop draining the treasury for no good reason. I didn't attend Harvard but the current economic strategy is, on its face, illogical. Millions of people didn't send Obama's campaign donations in small increments and the last dollar to their name to bail out wall street crooks. A pig is lipstick is still a pig!

Please, let me be wrong about my perception.

[Solja]

The way that reads, there are probably many more AIG-like corporations out there with people's pensions under siege. People think they have money and it turns out, it's gone.

I was for every bailout to date; every one of them, but NOT THIS TIME. No more! They gamble, they lose.

But I am a firm believer that SOMEBODY in all of this mess needs to go to jail. And if they can't figure out where to start, begin with the last guy who lead PBGC and left on Jan. 20). This is some explosive stuff right here:

"The Pension Benefit Guaranty Corporation may be little-known to most Americans, but it serves as a lifeline for the 1.3 million people who receive retirement checks from it, and the 44 million others whose plans are backed by the agency."

[TXfemmom]

Time for some investigation into how and why this was done. The government has to get tough, and first of all, with this guy, if they are going to fire the CEO at a private company, then they better be as tough with those in Government positions.

[DrVeruju]

Just when I begin to think that perhaps things might possibly be better than I fear they are, something like this comes along and points to my worst fears that the government is simply an arm of organized crime as described in the pages of
http://www.worldreports.org/news

[pros54]

The link is a whole load of bullsh!t.

[Hannah King]

Let me imagine for a moment that this was not a mistake. And the Bush administration systematically destroyed the safety net for millions of us peons. And the news the President receives worsens by the day. Meanwhile, a bunch of right wing media biggies, pumps their audiences (if they really have any) with fear and anger, hoping to get people to go nuts and turn into mindless rampaging mobs. So, if successful, they put into action their plan to put us all under martial law. Imagine that "they" stage a coup until they can get us all under control again. Imagine that's their plan. What could be going wrong? Well, President Obama inspires confidence, people are listening to him not them. Further, many of the people they could have reached have lost their homes and therefore their televisions. Oops. The only people watching them are laughing at them. But, the attack on our economic system is treason in my humble fantasy.

[TXfemmom]

Goldman Sachs must have been their investment advisor.

[jdenham]

This makes you wonder why an agency overlooked by treasury (Hank Paulson) would be investing in a Stock market that was already in trouble. Paulson knew in that there was tremendous risk in the stock market when this new investment plan was implemented, why would he risk pension plans? Was the Bush Administration trying to stablize the market with pension funds? Or were they trying to destroy the pension funds? I have to question whether we need to investigate for fraud here or stupidity.

[TXfemmom]

Knowing Paulson and the administration, it was, undoubtedly a case of Paulson and the administration trying to prop up the market and things to try to get through the election before the thing crashed, and managing to destroy the pension fund's ability to protect American citizens' pensions was just the icing on the cake.

[ceasenake]

I'm glad O'Bama has got it all under control! I'm not worried with him in charge.

[Haditup2here]

This stint, MadoffPonzi Scheme, and AIG makes Keating5look like small potatoes . . .

Geithner better come up with some heavy regulation to follow his "taxpayer" hedge fund , Toxic Asset Plan.