http://online.wsj.com/article/SB122486911340367147.html?mod=googlenews_wsjThe stupidity continues...Like the Titanic picking up passengers as it's sinking.......
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* OCTOBER 24, 2008, 6:13 P.M. ET
PBGC Chief Questioned on Investment Practices
By DARRELL A. HUGHES
WASHINGTON -- The head of the U.S. Pension Benefit Guaranty Corporation said that his agency is facing a shortfall because it has
lost nearly $5 billion in stock investments at a time when more companies are inadequately funding their pension plans, forcing the PBGC to take them over."PBGC has faced many challenges, including economic contraction in certain industries that traditionally have provided defined-benefit pensions," PBGC Director Charles Millard testified before the House Education and Labor Committee Friday.
PBGC reported earlier this week a $3.12 billion loss in equity investment during the 11 months ended August 2008. Those losses increased by roughly $1.7 billion in September alone, bringing the fiscal year 2008 total stock investment loss to $4.79 billion, according to documents released by the agency.
In the News
"With the current market turmoil,
we have to ask the question whether it is wise to invest our nation's pension backstop in volatile equities," <<
Gee d'ya think??>>> said House Education and Labor Chairman George Miller.
The agency's negative financial report comes as lawmakers are demanding more transparency from PBGC officials with regard to investment and management policies. The financial crisis has pension watchdogs and lawmakers on edge, which has magnified PBGC's role in insuring pensions of millions of workers.
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