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Pension Benefit Guaranty Corporation May Rescue Investment Banks

The pension plans of five key corporations in the ongoing mortgage crisis are underfunded by $400 million, a situation that could put pressure on the bottom line of the already cash-strapped Pension Benefit Guaranty Corp. should it have to intervene in the underfunded plans.

PBGC Director Charles E.F. Millard said it is too soon to say whether it might have to get involved with any of the pension plans. But Millard told lawmakers at a congressional hearing that the plans of Lehman Brothers Holdings Inc.( LEHMQ), Fannie Mae (FNM), Freddie Mac (FRE), Indymac Bancorp Inc. (IDMC) and American International Group, Inc. (AIG) are underfunded by $400 million.

Posted on Saturday, September 27 by Registered CommenterWise Owl in | Comments Off