Obama's Delphi Pension Bailout Under Investigation

Oversight Subcommittee to Examine Treasury’s Role in Delphi Deal from 2009 “Detroit Bailout”

September 4, 2013

WASHINGTON – House Oversight and Government Reform Subcommittee on Government Operations Chairman John Mica, R-Fla., today announced a hearing next Wednesday to examine a new inspector general report on the Treasury Department’s role in a controversial component of the Obama Administration’s “Detroit bailout.” In a 2009 deal between government-controlled General Motors and one of its major suppliers, Delphi, GM slashed the pensions of non-unionized employees, while preserving full pensions and benefits for their unionized counterparts.

Despite assurances that Treasury, as well as the Presidential Task Force on the Auto Industry (Auto Team) was not supposed to be involved in day-to-day decision-making at GM, the Special Inspector General for the Troubled Asset Relief Program fou... that the Treasury Department played key roles in decisions at GM, including in the controversial Delphi deal.

“For years the Treasury Department has refused to provide answers for the Delphi retirees who were hurt by their double dealing and have stonewalled this Congressional investigation,” said Chairman Mica. “The IG report now proves, despite years of denials by the Obama Administration, that they played a major role in picking winners and losers in the Delphi deal. Having been caught misleading the American people for years on this role, the Administration must finally answer questions about why they gave special treatment to only the unions at a cost to taxpayers.”

“The report completely discredits the Administration’s statement that they did not influence GM and were not involved in GM’s or the PBGC’s decision making. It clearly shows Treasury stepping in and perverting the process of the bankruptcy and using their influence to make certain that the outcome was politically desirable to the Administration,” said Rep. Michael Turner, R-Ohio. “This hearing is an opportunity to continue the investigation into the unjust termination of these pensions and the hardship that this Administration has imposed on thousands of Ohioans and retirees across the country.”

The hearing, “Treasury’s Role in the Decision for GM to Provide Pension Payments ...,” will take place on Wednesday, September 11, 2013, at 1:30 p.m. in room 2154 of the Rayburn House Office Building and will be streamed live at http://oversight.house.gov.. Additional information will be posted as it becomes available at the hearing page.

The Subcommittee on Government Operations held a field hearing on the Delphi pension bailout on June 10, 2013.

Background

Delphi Pensions and the Bailout of GM

Delphi is an American manufacturer of auto parts; it is amongst the largest auto suppliers in the world. Originally part of GM, Delphi separated in 1999 to become an independent company. Delphi declared bankruptcy in October of 2005, and emerged from bankruptcy in October 2009. In March 2009, GM, after having received federal assistance, agreed to purchase Delphi’s steering business.  Delphi is now an independent company, but maintains ties to GM through its relationship as a parts supplier.

As part of the 1999 separation agreement between Delphi and GM, three unions – the United Automobile, Aerospace, and Agricultural Implement Workers of America (“UAW”); the International Union of Electronic, Electrical, Salaried, Machine and Furniture Workers; and the United Steelworkers of America – secured a guarantee from GM that in the event of a Delphi bankruptcy, GM would “top up” (i.e., make whole) the remainder of pensions not covered in the event of a loss.   No such guarantee was given to Delphi employees that were not members of these three unions.  This agreement was preserved after the bankruptcy of GM.

Despite assurances that Treasury’s role, as well as that of the Presidential Task Force on the Auto Industry (Auto Team) was supposed to be purely advisory, the Special Inspector General for the Troubled Asset Relief Program found: “The decision that the New GM would honor the top-up was a joint decision by Treasury and GM with Treasury deciding to approve the UAW collective bargaining agreement with the top-up.”

Oversight Committee Investigation and Treasury Department Stonewalling

On August 9th, Full Committee Chairman Darrell Issa, R-Calif., issued a subpoena to Treasury Secretary Jacob Lew seeking all records and communications referring or relating to retirement or pension benefits for General Motors Company and/or Delphi Corporation employees, sent or received by any employee of the U.S. Department of the Treasury, to or from:

  • any employee of the President’s Automotive Task Force;
  • any employee of the United Auto Workers;
  • any employee of the Pension Benefit Guaranty Corporation;
  • any employee of General Motors Company;
  • any employee of Delphi Corporation;
  • any employee of DPH Holdings Corporation; or,
  • any Public Official.

July 23, 2013 letter to Lew outlined earlier requests sent on January 13, 2010August 8, 2011 and September 27, 2012 to Lew’s predecessor.

 

http://oversight.house.gov/release/oversight-subcommittee-to-examin...

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Un _ _ _ _ _ _ _ believable!
Obama and the liberal progressive democrat machine STOLE money from NON union employees and GAVE IT TO UNION employees!
Without doubt, EVERY facet of our existing government in Washington is now positioned to favor liberal progressive democrat machine operatives at EVERY level of our society.
We the People are on the outside looking in!

support/join/create a local common law grand jury, its the only way we the people really have a voice and the power to hold them liable for there actions nationalliberty alliance.org

Yup. I remember that..................Crickets.

I remember how they closed down all the Conservative dealers and gave preference to the liberals and minorities too.

Cash for Clunkers? Another SCAM.

When will impeachment proceeding hearings begin...just talking about them will not accomplish nothing...as usual Obama is right in the middle of any wrong doing

support/join/create a local common law grand jury, its the only way we the people really have a voice and the power to hold them liable for there actions nationalliberty alliance.org

Did you hear about this one on the nightly news?"

No I did NOT see or hear about this on the nightly news, reason, I never watch the  nightly news.

However, that's NOT the reason I nor anyone else DIDN"T see this on the nightly news, the REAL REASON is the "nightly news" ie: liberal progressive democrat machine media, would NEVER cover a story which strikes at the core of their very being!

We are under tyranny. 

Not only impeachment but imprisonment should be put on the the obamantion. 

But without taking the Senate that will not happen.

TAKE ACTION. Speak up and get involved. 

Oh now, now,, it's just another little scandal. You know berry the commie and the holder the crook new nothing about it. Besides what are you all going to do about it? We are the untouchables!!!!!

Greg -Ah, "The Untouchables" - -Eliot Ness, where are you now?  Don't know if your old enough to remember that tv show, back in the 70's and 80's; at least they were not corrupt and worked for the "good" of law and order!  We need a "real organization" just like it!  Eliot Ness was a "real, living person", who worked for the Bureau of Prohibition, back in the 1920's and 30's; an autobiographical memoir was published, in 1957, by a man named Fraley.  He wrote the book from Ness's "real life experiences"; the movie and the tv series were produced from than book!

These crooks in Washington need to be criminally and CIVILLY charged.  Hit them in the pocket books because, that's what turned them into corrupt individuals.  This is what matters to them.

This will be another waste of the Oversite Subcommitees time! I don't recall, it was a computer error, I been advised to take the fith, etc

Another scandal where heads of agencies will deny any wrong doing and plead the 5th. We are never going to get to the bottom of any on these scandals until we replace Congress with honest law abiding representatives.

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ALERT ALERT

SWEET: Republican Representative Introduces Resolution To Expel Nancy Pelosi From Congress

Louisiana Republican Rep. Ralph Abraham has introduced legislation to expel Speaker Nancy Pelosi from the House of Representatives.

Abraham’s resolution accuses Pelosi of a “vicious crusade” against President Donald Trump.

Above: Rep. Ralph Abraham

“Nancy Pelosi’s vicious crusade against our lawfully-elected President is nothing more than a politically-motivated witch hunt and it must be stopped,” Abraham said in a statement obtained by Fox News. “She has disgraced the people’s House and weaponized the Speaker’s gavel for her party’s political gain.”

“House Democrats spent nearly three years obsessed with election meddling only to dwarf any such efforts with their own deceitful plan to nullify the 2016 election and prevent President Trump from winning in 2020,” the statement continued. “I have introduced a resolution calling for her to be expelled from the House and for the Speaker’s Office to be vacated.”

The text of the resolution, which is most definitely not going to pass the Democrat-controlled House reads: “Resolved, That pursuant to Article 1, Section 5, Clause 2 of the United States Constitution, Representative Nancy Pelosi be, and she hereby is, expelled from the House of Representatives and the Office of the Speaker is declared to be vacant.”

Fox News notes that constitutional clause holds that “Each House may determine the Rules of its Proceedings, punish its Members for disorderly Behaviour, and, with the Concurrence of two thirds, expel a Member.”

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