Leaked emails seem to indicate that Treasury Secretary Tim Geithner was “the driving force” behind the termination of over 20,000 non-union retiree pensions from the Delphi auto parts manufacturing company – part of the government’s bailout plan for General Motors.
The emails released by the Daily Caller detail the elimination of over 20,000 pensions back in 2009 when the Obama administration implemented its bailout plan. The key difference is that the 20,000 retirees who lost their pensions were non-union members, while conversely, union workers “saw their pensions topped off and made whole.”
According to conservative website HumanEvents, the decision of which pensions to cut was to be made by the politically neutral Pension Benefit Guaranty Corporation, which is meant to represent the interests of private-sector pensioners. Instead, the emails show massive top-down influence from the Treasury Department, with one email from a PBGC staffer saying that he had “made progress discussing our proposal with a number of key folks in Treasury and at [the] White House, but he has not yet wrapped up his coordination. He indicated that there is an 8 AM call tomorrow that he’ll use to close the communication-loop, and he’s confident he’ll have a fully-vetted Treasury view after that call.”
Of course, this is problematic for the oft scandal-ridden Geithner. The elimination of the 20,000 non-union pensions has already been public knowledge – it’s the fact that Treasury officials testified under oath that the PBGC terminated the pensions – not the Treasury – that is a troubling snag for the administration. Furthermore, the emails between the Treasury and the PBGC seem to show the fed calling the shots.
You can see the leaked Delphi pension/Treasury emails here. Geithner is already dealing with Libor. Will this erupt into a scandal that finally ruins him? Sound off below!