Mon Nov 19, 2012, 02:13 PM
ToxMarz (207 posts)
Pension fund theft is a business model. Twinkies Defense Is Private Equity's Pension Offense
The liquidation filing of Hostess Brands -- the maker of consumer fattening favorites such as Ho Ho's and Twinkies - also means that Americans may soon gorge themselves on the company's massive pension liabilities
Hostess' liquidation -- just like the recent bankruptcies of well known companies like Friendly Ice Cream and Eddie Bauer -- raises the prospect that sophisticated private equity and distressed debt hedge fund investors are using courts to cast off unwanted pension obligations on U.S. taxpayers and put a losing investment back on the track.
The size of Hostess Brands employees claim to PBCG could also illustrate how big money investors are using the bankruptcy process to shirk financial obligations on a federal agency, which increasingly looks to be supported by taxpayers, as a means to salvage or profit on an investment.
7 replies, 1212 views
Pension fund theft is a business model. Twinkies Defense Is Private Equity's Pension Offense (Original post)
|Teamster Jeff||Nov 2012||#6|
|Wellstone ruled||Nov 2012||#3|
Response to NYC_SKP (Reply #1)
Mon Nov 19, 2012, 03:01 PM
smccarter (145 posts)
There are no values on Wall Street. Turn a profit at any cost.
Union busting ... take the power away from the worker and this is what happens. It's called Reaganomics.
Response to leftyohiolib (Reply #2)
Mon Nov 19, 2012, 03:10 PM
Teamster Jeff (1,302 posts)
6. Hostess owes $944 million to the Bakers Union pension fund
What they do is cry poor and just stop paying into the Unions pension fund. Then they try to negotiate what they owe away when the labor contract is up. That didn't work so now they file bankruptcy (again) and sell off the brand and cash out. Meanwhile, the pension fund is underfunded and in trouble.
Companies like where I work then come to our negotiations and say "look at how Unions mismanage pension funds. It would be in your best interest to drop your pension and let us put you in a nifty 401K where your money will be safe."
These people are liars and crooks.
Response to ToxMarz (Original post)
Mon Nov 19, 2012, 02:41 PM
Wellstone ruled (1,913 posts)
3. Remember all the Bankruptcy Law
changes under the Shrub,there you go. Check out what really happened and why we Dems should be really pissed at Schumer,Badckus,and Chris Dodd. They are the same jerks who are pushing the so called third way. Watch out because Gephart and Daschel are in the back ground again. F--en Blue Dogs.