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Administration January 14, 2009
PBGC Stakes Out Place in Madoff Proceedings
January 14, 2009 (PLANSPONSOR.com) - The nation's
private-sector pension insurer told a bankruptcy judge that
it would represent the government in liquidation proceedings
against Bernard Madoff's investment company if a pension
failed as a result of Madoff-related losses.
Reported by Fred Schneyer
A Reuters news report said the Pension Benefit Guaranty Corporation (PBGC) filed papers in the U.S. Bankruptcy Court for the Southern District of New York to secure its position as a creditor so it could act to recover any available assets for a failed plan.
“The PBGC insures almost 30,000 pension plans,” agency spokesman Jeffrey Speicher told Reuters. “One or more of those plans may be exposed to losses as a result of the Madoff investment scandal.”
Madoff has not formally answered one charge of securities fraud in court. Authorities say he has confessed to running a $50-billion global Ponzi scheme. He was arrested in December and is free on bail.
The news report said a court-appointed trustee is overseeing the winding down of Bernard L. Madoff Investment Securities LLC.
A number of pension programs and other institutional investors have already seen Madoff-related losses (see Another CT Town Reports Madoff Losses ).