Underfunded autoworker pensions- Taxpayer left holding the bag after CA plant shutdown

[BirdGuano]

http://www.sfgate.com/cgi-bin/articl...&type=business

In an action filed last week in San Francisco, the Pension Benefit Guaranty Corp. (PBGC) asked the federal courts for permission to take over the underfunded plan that covers more than 4,700 workers who will lose their jobs when the plant closes April 1.

[Fiddlerdave]

Hey! Just like every other American corporate employer!

The Japanese are learning American business morality fast, "when in Rome, do as the Romans do!"

[Ross]

But last week, on the same day PBGC took its action, Toyota said it would be giving Nummi $250 million to fund severance payments for affected workers.

This is a little confusing . The way I read it Toyota has been generous it
is GM that has walked away ( or the liquidation co for GM ) .

[BirdGuano]

Originally Posted by Ross

This is a little confusing . The way I read it Toyota has been generous it
is GM that has walked away ( or the liquidation co for GM ) .

Bankruptcy has a funny way of eliminating your obligations.

[leistb]

Originally Posted by BirdGuano

Bankruptcy has a funny way of eliminating your obligations.

Especially to senior debt holders when sanctioned and executed by the government.

[Fiddlerdave]

Funny how there is no "moral hazard" for CEOs or investors in THESE situations!

Making CEOs and stockholders PERSONALLY liable for corporate losses and illegality could actually make the "Atlas Shrugged" type of responsible capitalism work!

I won't hold my breath for any of our "rugged individualists" to lobby for personal responsibility for their actions as Ayn Rand envisioned, though! That's the part of her philosophy FEW big "capitalists" care to practice.