The Pension Benefit Guarantee Corporation is quietly alerting the investing public that it intends to provide less protection to private individuals who are beneficiaries of private defined benefit pension plans of companies that are bankrupt or otherwise can't meet their obligations. Unfunded liabilities of at risk pension plans exceed $14 billion now, and tend to surge when companies go under.
A federal PBGC bailout at the same time as a FreddieMac and FannieMae bailout (they just received massive credit line extensions from the Federal Reserve Bank) could make the S&L bailout look like kids' stuff.
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