PBGC Loses Billions On Bad Investments

Law360, New York (October 23, 2008, 12:00 AM EDT) -- The U.S. Pension Benefit Guaranty Corp., which insures the pension plans of 44 million private-sector workers, confirmed Thursday that it lost about $1.2 billion over the 11-month period ending Aug. 31.

PBGC spokesman Jeffrey Speicher said the federal agency took a $3.1 billion equity loss in the first 11 months of fiscal year 2008, but that this was offset somewhat by investments in fixed-income securities and other products.

“We will be releasing our annual results in mid-November,” Speicher said. “It looks like the investment loss will...
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