Geithner Sacrificed Pensions Of Non-Union Delphi Retirees

Tyler Durden's picture

Back in 2009 when the government sacrificed GM and Chrysler bondholders just so labor unions (read voters) can be made whole, the media, for various reasons, decided not to pursue the decision-making process that left some workers with their pensions wiped out, while others were made whole and suffered no losses (with a comparable lack of investigation being conducted as to the decisions that shuttered some Chrysler dealers, but left others operating, a topic Zero Hedge had some say over). In fact, as the Daily Caller reminds us "The White House and Treasury Department have consistently maintained that the Pension Benefit Guaranty Corporation (PBGC) independently made the decision to terminate the 20,000 non-union Delphi workers’ pension plan...Former Treasury official Matthew Feldman and former White House auto czar Ron Bloom, both key members of the Presidential Task Force on the Auto Industry during the GM bailout, have testified under oath that the PBGC, not the administration, led the effort to terminate the non-union Delphi workers’ pension plan." Turns out they lied... Under oath.

The Daily Caller has more on this less than shocking revelation: "Emails obtained by The Daily Caller show that the U.S. Treasury Department, led by Timothy Geithner, was the driving force behind terminating the pensions of 20,000 salaried retirees at the Delphi auto parts manufacturing company. The move, made in 2009 while the Obama administration implemented its auto bailout plan, appears to have been made solely because those retirees were not members of labor unions."

In other words, since the sanctity of the labor union would be untouched with their pension loss, those workers were expendable. Not so much the unionized workers, and potential re-voters. Of course this reminds us of an analysis presented here previous debating whether Labor Unions are the "New, Old Superpacs." Because while one or two billionaires may have enough money to buy a lot of GM and Chrysler bonds if they so desire, a million UAW workers collectively are more than capable of inverting the superpriorty waterfall structure embedded in every bankruptcy which in turn could easily make said billionaires into millionaires or far less.

DC continues:

The internal government emails contradict sworn testimony, in federal court and before Congress, given by several Obama administration figures. They also indicate that the administration misled lawmakers and the courts about the sequence of events surrounding the termination of those non-union pensions, and that administration figures violated federal law.

 

Delphi, a General Motors company, is one of the world’s largest automotive parts manufacturers. Twenty thousand of its workers lost nearly their entire pensions when the government bailed out GM. At the same time, Delphi employees who were members of the United Auto Workers union saw their pensions topped off and made whole.

Somehow, despite potential evidence to perjury, we doubt the the outgoing Trasury Secretary who has at most a few more months in his current position before he shifts to a cushy position in some university or Wall Street bank, will lose much sleep over the prospect of appearing in court and having to defend why he may have lied to Congress. After all, as the head of the Eurogroup will gladly remind us every so often, "when it becomes serious, you have to lie."

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LawsofPhysics's picture

Just the tip of a large iceberg.  Send Timmy to the fucking guillotine already along with all the other criminal paper-pushers.

flacon's picture

Who put the apes in charge of this zoo?!

GetZeeGold's picture

 

 

Blame it on TurboTax.

 

Jay Gould Esq.'s picture

Frankly, the current crop in power govern as little more than gangsters.

azzhatter's picture

Like a third world banana republic

Xibalba's picture

and he still walks around like King Kong. 

 

 

 

saturn's picture

You know how king kong ended up..

HoofHearted's picture

"I am not a crook!"

"You won't have Dick TIMMAY to kick around."

NotApplicable's picture

"You're either with us, or against us."

Got Gang?

engineertheeconomy's picture

Yeah, and we call ourselves "We the People". We've marked our territory. Maybe you've been to our hood or seen it on TV. It's a little place called Planet Earth. We're getting ready to have a little gang bang with our rivals, our sworn enemys till death, the Bankers. This time we're going to "finish the job".

Dec 21st, 2012 - Worldwide

BRING MACE

WE'RE GONNA SPRAY EM IN THE FACE

WE GONNA PUT EM ON ICE

MAKE THE WORLD A SAFE PLACE

sessinpo's picture

You know, I think the third world is getting sick and tired of being compared to the US. Why does everyone have to insult the thirld world that way?

lincolnsteffens's picture

Now the delema. If Romney wins the election does any one think his gang will be

less corrupt? The only way to fix this is to shrink government. If you still have a job and

are actually getting paid, how do you limit paying taxes whithout having the IRS come

after your assets?

JLee2027's picture

I'm not advising doing anything illegal, but I've heard it takes about 5 years of non-compliance with the IRS before things get that serious. The obvious question being, will this system/government/country exist in 5 years?

NotApplicable's picture

IRS has been buying lots and lots of guns over the last few years, and hiring lots of crazed statists to man them.

Then they pick a target, conduct a raid, and cart off ALL of the booty.

Not bad work, if ya can get it.

MachoMan's picture

Not remotely true in my experience...  it might take them a while to catch you for not filing, but I don't think this typically takes 5 years...  it's dependent on a lot of things, but I consider 5 years to be an outside chance rather than a gimme...  the other problem is that once you've been identified, the time it takes to get a lien placed on your assets can be very quick...  this can be extended through some...  legal meandering and puffing, but in general can occur very quickly.  Once the lien is in place, your wiggle room is much, much tighter...  However, there isn't some IRS guidebook that says, "let folks eat cake for 5 years and then drop the boom on em".  Once you get identified, it's generally a quick process after that...  the only question is when will you be identified?  (hint: with mandated electronic filing and the 1099 system, catching people for not reporting or under-reporting income is getting a lot easier).  Remember, they're desperate for money...

 

JLee2027's picture

Thanks...I really don't know. Just knew a guy once who got wacked by them - he'd done non-compliance for 5 years (per the newspaper articles) which amazed me. Of course he was caught and sent to the Big House.

FreedomGuy's picture

As one caught in a common tax trap (forget loopholes) and dealing with the IRS fascists now, they do not seem to take five years. Even when I paid the requested amounts I get new threatening letters for more om our friendly civil servants. I am asking myself what the limit is to put up with these faceless nameless little turds. In government there are no mistakes. There is only 100% compliance (submission) or fraud. Even if it is a "mistake" you get crushed with penalties and threats unlike anything the private sector can do.

I am preparing my last appeal to wave the penalties applied to the penalties and interest applied to the actual original tax. I am canning my overpriced underperforming tax representatives.and going to write a reasoned appeal to the gun toting IRS. My theoretically conservative Congressman will get a copy...as if he cares.

When you deal with one of the thousands of government police agencies you realize it is their full time job and ability to make your life hell till you submit. It is not their job to help you or deal with you fairly and as a fellow citizen. If you piss them off they will come after you every year. If it is the TSA they will call the pervs to do a body cavity search on you.

I have changed sides in my reading of the Whiskey Rebellion.

FEDbuster's picture

WROL (Without Rule of Law) it will only get worse from here. 

XitSam's picture

It's only WROL for the elites. The peon, the serf, the regular people are being oppressed with more and more laws, regulations and gestapo tactics. https://tsaoutofourpants.wordpress.com/2012/08/07/tsa-abuses-rape-surviv...

tbone654's picture

I can't help thinking this must be what some of the citizens of Germany felt like once Adolf Hitler took power and began to rule...

We may be getting to a point where executive order will eliminate the vote all together...  Who would dare complain?

dark pools of soros's picture

wait are you trying to organize to fight against bad treatment??  you should be strung up as a pro union thug

 

 

snaphooker's picture

The rule of law has become the law of rule

engineertheeconomy's picture

The Government  (the rich people) are stealing everything that is not nailed down from us (we the people, us working class citizen slaves)

Turn around is fair play...

Dec 21st, 2012

Let the games begin!

sessinpo's picture

I think it should be a play on of the acronym AWOL - Absent Without Official Leave.

 

AROL, Absent Rule Of Law.

Dr. Engali's picture

That's raccciiiisstts. Consider yourself a person of interest. One more out of line comment and you will be directed to the nearest fusion center.

Apeman's picture

Hey man, no need to start insulting apes.

Georgiabelle's picture

I wouldn't hold my breath waiting for the so-called Department of Justice to investigate or prosecute. They are far too busy suing the states for having the audacity to enforce state and federal laws and for trying to ensure free and fair elections. 

Carl Spackler's picture

Start the Congressional hearings and bring forth the tangible evidence.

Have a U.S. Attorney open an investigation or two.

Somebody start doing something.

Buck Johnson's picture

I remember the media didn't go to deeply into the whole process with Delphi.  This is just plain horrible, truly horrible.

Cognitive Dissonance's picture

"Turns out they lied... Under oath."

Doesn't matter. It was a "national security issue".

See how easy that is? Try it yourself. It's fun and easy and after you get past that sick feeling in your stomach, the power rush to the head is breathtaking.

Shizzmoney's picture

"Turns out they lied... Under oath."

Easy to lie when a) you don't believe in God and/or b) you believe you have immunity from authority on Earth and c) a douchebag.

Geithner probably fits in two of those three camps. 

Cognitive Dissonance's picture

Tyranny breeds even more tyranny in the ultimate positive feedback loop.

Exponential bitches.

FEDbuster's picture

Time has come to interupt the "loop".

“Whenever the legislators endeavor to take away and destroy the property of the people, or to reduce them to slavery under arbitrary power, they put themselves into a state of war with the people, who are thereupon absolved from any further obedience.”
~ John Locke

saturn's picture

Sure, but the are about to take ppls guns, lol. Can you kill with a gaze? :)

FEDbuster's picture

That I am convinced would be a blood bath on both sides.  Over 100 million gun owners in the United States, with more guns in private hands then the entire US population and billions of rounds of ammunition for those guns.  Molon Labe.

DeadFred's picture

My guns were lost with my gold in that boating accident. I suspect many others have met similar fates.

FEDbuster's picture

My guns are cleaned, zeroed, loaded and readily available for use.

Widowmaker's picture

King Fag Bloomberg Blowhard is trying to outlaw assault hands, battery rocks, and sticks of terror, too.

Come on, lets have a REAL conversation about guns - I mean a real one where it is painfully clear guns are the only reason US society has any sort of order.   Really real conversation, come on. - no tears this time.

Those trying to remove guns will only remove themselves - that is a fact.

 

t0mmyBerg's picture

You might be able to kill with a word.  Muad'Dib 

viahj's picture

or a picture of Janet Reno

CrockettAlmanac.com's picture

I don't believe in God and I find no value in lying. Turns out that there are rational reasons for engaging in responsible behavior which provide more reliable motivation for one to behave ethically than the prospect of imaginary hellfire.

tarsubil's picture

Where did those rational reasons come from? The natural rules that they are subject to, where did those come from?

CrockettAlmanac.com's picture

I don't know what set the world to spinning but that doesn't mean that it was made by an invisible man who flies in the sky forever. If you don't know something it is far more reasonable and honest to admit that you don't know rather than to make up a story about it. If you want to believe in the invisible man that's fine with me but I found it necessary to point out the error made above regarding the ease with which atheists supposedly lie.

JLee2027's picture

I think it's important to keep your beliefs private (since no one asked you), but since you decided to insult others; before I point out to you that God created all and doesn't need to fly in the sky he created, and one day all that will be proven to you in your everlasting sadness. Really sad since you think life sprang from a rock! Talk about nuts. What a fairy tale.

CrockettAlmanac.com's picture

Shizzmoney said that atheists lie. I responded to that insult. Why don't you tell him to keep his beliefs private?

 

Really sad since you think life sprang from a rock! Talk about nuts.

 

I never said that. Why do you find it necessary to lie in order to promote your beliefs?

mayhem_korner's picture

Shizzmoney said that atheists lie.

 

He actually said that it's easy to lie if you don't believe in God, but your translation of his words is fair.  I'm a believer, and it troubles me greatly when others somehow associate being a believer with being immune to immoral behaviors, as Shizzmoney did.  (There is no difference, for all have sinned... Rom 3-23). 

My great hope is for all to believe, but statements that fail to acknowledge our common condition - the thing that gives rise to (in my view) the need for God - simply gives others a reason to tune out.  

CrockettAlmanac.com's picture

Hi Mayhem. Thanks for your insight and reasonable response. May God bless you and yours.