Senators ask for investigation of Pension Benefit Guarantee Corporation to continue

Here is a report on the PBGC (Pension Benefit Guarantee Corporation). This is the agency that is supposed to take over, and administer pension plans in the case of a bankruptcy, assuring that workers do not lose everything.

However, like FEMA, NLRB and other governmental agencies, under the criminal Bush regime, they were turned on their head and, in many cases, became instruments used to steal rather than save workers’ pensions.

This report refers to an ongoing investigation of E.F. Millard, one of the two Bush appointees to head the PBGC. The investigation presently concerns a couple areas; Milliard's unethical, and probably illegal, constant contacts with high corporate sources during his tenure at the PBGC, including his apparent violation of a court ordered gag rule, and Millard's shifting of PBGC monies from relatively save bond investments to the stock market where, as of Sept. of last year, he's lost over 23 percent of all PBGC funds. (This is refered to as a 'more aggressive investment policy' in the attached report).

While the PBGC remains solvent, it was greatly harmed by Millard and Steven Kardarian, the Bush appointee Millard replaced. Under both these individuals, the PBGC acted against, rather than in favor of, saving worker's pensions. At Republic Steel, in Lorain and Canton, Ohio, and in Chicago, Kandarian refused to pay pensions workers had earned, thereby stealing those pensions. This non-payment resulted in a series of suicides, lawsuits, massive health problems and a horrible burden on those communities. I was personally involved in that situation, having the majority of the pension I'd earned stolen.

We can only hope that some of these corporate criminals are given long stays at some public facilities, with bars, at our expense!

KENNEDY, COLLEAGUES CALL FOR FURTHER INVESTIGATION OF FORMER PBGC’S DIRECTOR’S ACTIONS WITH CONTRACT AWARDS May 14, 2009 FOR IMMEDIATE RELEASE

WASHINGTON, DC- Four U.S. senators have asked the Inspector General for the Pension Benefit Guaranty Corporation to continue investigating the corporation’s former director, based on findings reported in a draft Inspector General report made public today.

The draft report indicates possible interference in contracting decisions by the former director in awarding a total of $2.5 billion in assets held by the PBGC for real estate equity and private equity investments.

The letter urging further investigation was signed by Senators Edward M. Kennedy of Massachusetts, Max Baucus of Montana, Charles E. Grassley of Iowa, and Michael Enzi of Wyoming. The senators have conducted oversight of the PBGC in their positions as Chairmen and Ranking Members of the Senate committees on Finance and Health, Education, Labor, and Pensions.

IG's draft report

The text of the letter follows here.

May 14, 2009 Rebecca Anne Batts Inspector General Pension Benefit Guaranty Corporation Office of Inspector General 1200 K Street, N.W. Washington, DC 20005 Dear Inspector General Batts:

Thank you for your recent investigation of and report on former Director Charles E.F. Millard’s involvement in the Pension Benefit Guaranty Corporation’s (PBGC) implementation of its investment policy. This report brought to light very troubling actions regarding Mr. Millard’s involvement in the procurement process, and we look forward to seeing the extent to which PBGC carries out your recommendations.

We write to request that your office conduct further investigation into Mr. Millard’s later contacts with executives at companies that were awarded strategic partnership contracts. We refer in particular to e-mails between Mr. Millard and a top executive at Goldman Sachs, which was awarded $700 million of PBGC assets for private equity investments. In e-mails that were sent within two weeks after the award was announced, Mr. Millard writes to one Goldman Sachs executive regarding his job prospects, “Good to see you today. Thanks for speaking with Dennis Kass, and for your offer to get in touch with” several non-Goldman Sachs investment firm executives. He later asks the executive for contact information for an executive at Jennison Associates, an investment firm. After the Goldman Sachs executive confirms on November 12, 2008 that several executives are interested in meeting Mr. Millard, he responds “Ur grt. Tx. Will send info soon.” Mr. Millard later e-mails several executives at another investment firm about their interest in him. He did not hear back for a period of weeks due to one of the executives’ illness, until the Goldman Sachs executive e-mailed him, “[The Executive] said he really likes you and if times were better he would have hired you already…. He definitely likes you – is just not in a rush due to the terrible markets. Hope that helps.”

This correspondence clearly shows Mr. Millard seeking placement assistance in the weeks following the contract announcements. We do not know the extent to which these conversations took place in personal e-mails or telephone calls, and request that your office further examine this matter. Thank you for your prompt attention to this matter, and we would appreciate an initial response by no later than May 29, 2009.

Sincerely,

Edward M. Kennedy Chairman HELP Committee

Max Baucus Chairman Committee on Finance

Michael Enzi Ranking Member HELP Committee

Charles E. Grassley Ranking Member Committee on Finance

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