Former Head of Pension Agency Refuses to Testify - Reports $33.5 billion deficit !!!!!11!!

[Subdivisions]

May 20 (Bloomberg) -- The former head of the federal agency that guarantees the pensions of 44 million Americans invoked his Fifth Amendment rights at a Senate hearing, refusing to discuss his contacts with Wall Street firms bidding for business.

Charles E.F. Millard is being investigated by Congress over his relationships with JPMorgan Chase & Co., Goldman Sachs Group Inc. and other firms while he led the Pension Benefit Guaranty Corp. during the Bush administration.

Millard cited Fifth Amendment rights against self- incrimination three times today during a session of the Senate Special Committee on Aging. The pension agency reported a $33.5 billion deficit earlier today.

“Congress’s recent actions and statements have created a biased and hostile environment toward Mr. Millard,” his attorney, Stanley Brand, said in a statement. “Certain members of the United States Congress appear to already have reached adverse conclusions.”

...

http://www.bloomberg.com/apps/news?pid=20601087&sid=aX_YpTysrpx4




More...



From the AP:

Former head of pension agency takes the Fifth

By DEB RIECHMANN – 1 hour ago

WASHINGTON (AP) — The former director of the government's pension agency took the Fifth Amendment Wednesday when senators asked about allegations that he had inappropriate contacts with Wall Street firms while running the operation, which insures the pensions of 44 million Americans.

Charles E.F. Millard denies that he had improper communications with the firms that recently won multimillion-dollar contracts to advise the agency on a new strategy to invest its assets more heavily in stocks, real estate and private equity rather than more conservative fixed-income treasury securities.

In a statement issued before the hearing, Millard's attorney Stanley Brand questioned the Senate Special Committee on Aging's jurisdiction in the matter. He said he advised Millard to assert his constitutional rights because he believes certain members of Congress appear to have already reached negative conclusions about his client's actions.

"I decline to answer any and all questions," Millard said.

...

http://www.google.com/hostednews/ap/article/ALeqM5inFZr1O1zSxPpgH9glULCEo5ldrwD98A4SQG0


I THINK OUR FUCKING LAW ENFORCEMENT AGENCIES NEED TO RAID GOLDMAN FUCKING SACKS!!! And while they're at it, how about all the banks, insurance companies, etc., that have stolen our fucking money!

[Kaleko]

1. Systemic corruption.

Who are you gonna call?

[Subdivisions]

3. That's right. Who are you going to call? Which brings us to this cold hard fact...

It can only end with us having to eat mud cookies while the corrupt motherfuckers that got us there eat like kings while surveying the slave-class that produces their feast.

[truedelphi]

6. Yet most people even on this board cannot face this

For them, it's all about how a new face at the WH will save us middle incomed slobs.

Yeah right. Yet i do understand that it is so hard to face up to the fact that our democracy died - that was an issue I wrestled with circa 2004 and the forces that were stealing our elections via the voting machinery. So I have accepted our democracy is dead some time ago, and can see clearly now that the "Democracy Blinders" are off.

But every day, more people do wake up.

Have you seen Alan Grayson's rant here? He really gets it.

http://www.youtube.com/watch?v=PXlxBeAvsB8

[Robbien]

2. Findings of Inspector General show Millard was practically living on Wall Street

* Average investment return of global stocks over the past decade, as of February: -29%

* Average investment return of government bonds over the same period: +80%

* Value of funds under Millard's management: $64 billion

* Value of funds Millard's overhaul proposed to shift from bonds to stocks and real estate, in a move that effectively outsourced their management to Wall Street investment banks: $25.6 billion, or 55% of the nearly $50 billion portfolio.

* 2008 return on PBGC's stock market investments reported before September 30, 2008: -23%.

* PBGC's portfolio losses since September 30, a period during which the S&P 500 index has fallen 24%: Unknown.

* Number of calls Millard placed to BlackRock Capital during the months leading up to the announcement of the fund: 45

* Number of calls Millard placed to J.P. Morgan during those months: 95

* And to Goldman Sachs: 45

* Value of fees awarded to the aforementioned three investment banks by the fund, estimated over 10 years: $100 million

* Value of one "investment partnership" awarded to Goldman Sachs: $700 million

* Number of emails dated prior to the award of aformentioned partnership documenting the efforts of a senior Goldman Sachs official to assist Millard in his search for employment: 29.

In their letter to the OIG urging them to pursue a criminal investigation of Millard, the four senators provided a sad coda to Millard's job hunt:

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, " 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."

As of late February Millard was being spotted leisurely breakfasting at the Regency Hotel with a likeminded crowd who joked to the New York Post that the inauguration had finally given Republicans some time to relax.

(Not if Congress has anything to do with it!)

http://tpmmuckraker.talkingpointsmemo.com/2009/05/the_pension_benfits_guaranty_corporation.php#more


This guy gutted our pensions. Not surprised he is taking the fifth

[Spazito]

4. When the Bush admin/repubs/corporatists weren't able to steal Social Security monies...

they focused on the pensions within their control. Anything to prop up the increasingly evident collapsing house of cards.

Despicable, absolutely despicable.

[sarcasmo]

5. GREED, Prosecute and Execute one of the Greedy bastards and all of the other Greedy Bastards

Will stand up and take notice.

[nichomachus]

7. Well, then, let's waterboard him n/t

[Wednesdays]

8. K&R

:kick: