Failed Lender Makes Grab for Employee Funds (American Home Mortgage)

[DuaneBidoux]

Source: AP

Bankrupt American Home Mortgage is attempting to seize as much as $27 million that former employees set aside from paychecks for retirement, according to an attorney representing them.

Employees say Melville, N.Y.-based American Home Mortgage Investment wants to release retirement money from a trust fund to pay off large creditors.



Read more: http://www.cnbc.com/id/20837583

[acmavm]

1. Well, isn't that lovely. The employess saved their money and

the clowns who ran mortgage scams and gave out risky loans want to snag it. Sounds like the American way to me.

[mike_c]

2. those rat bastards give pigs, rats, and bottom feeders everywhere a bad name....

:grr:

[truebrit71]

3. Not gonna happen...But it does reveal to an extent previously unknown...

...how fucked up corporations are..

[JDPriestly]

4. Not gonna happen?

How can you be so sure?

[truebrit71]

6. A judge is going to take away employee's money to give to the idiots that drove...

...the company into the ground?

Not gonna happen...

[tkmorris]

11. Your optimism is refreshing

I wish I shared it......

[JDPriestly]

13. His/her optimism is very refreshing.

What is it based on? Why do you say the judge won't allow them to take the money? What if they sell the company?

[DuaneBidoux]

15. Don't forget, Bush has appointed a whooooolllll lotta' judges in 8 years.

[lovuian]

5. this is what happens when companies go bankrupt they

steal the employees money

another advantage of 401k

[Highway61]

7. What a bunch of scumbags

Maybe I live in some kind of fantasy world....but for God sakes, the scheming and stealing is relentless. Every day I hear something that just blows me away. It's like a sick game of "Can you top this?"
How do people sleep at night?

[Lone_Star_Dem]

8. I'm interested in seeing how this plays out

"Its 40 biggest creditors include virtually all the major names of Wall Street."

You have the large creditors in one corner and the worker in the other.

By all rights the workers retirement money should belong to the worker, but the large creditors will have more pull with those in power than the workers.

[sarcasmo]

16. I agree, if this plays out in the Corporations favor I would never put a dime into a company 401K.

[Gormy Cuss]

9. Deferred compensation for employees making over 200K per year, not garden variety 401Ks

AHM still shouldn't be allowed to access the trust fund, but it's not an attempt to raid the low paid workers' retirement accounts it seems.

This is the same company in the news recently because it hasn't been paying taxes and insurance out of mortgagors' escrow accounts.

[Spinzonner]

14. Ex New Century employee's are also suing over this

[BR_Parkway]

10. Not 401K - this is deferred compensation for Executives, who ran

the company into the ground.

The case in bankruptcy court in Delaware is being brought by 43 employees who had a total of $11.6 million in the retirement trust.

The deferred-compensation plan enabled employees making more than about $200-thousand per year to save money tax-free until they retired.

Not sure how I feel about this one. On one hand, the company shouldn't be able to renig on a promise, but I'm sick of those at the top of these failed companies walking away with everything either.

[truebrit71]

12. Hmmm, in that case fuck 'em...

...deferred comp is usually a tax-dodge for the ultra-high salaried...

[sarcasmo]

17. If a Judge says this is OK, why wouldn't another large Corporation try this with the average Joe's

401K.

[Trillo]

18. Well, the rightwingers believe these funds are the companies,

and any former employee that receives them is getting "welfare". :wtf:

Our laws need to put a stop to this type of financial abuse of employees and their pensions, I've been reading about it for some 30 years. Raiding them is not a "new" game the corporatist plays.

[Skink]

19. Maybe Halliburton will try this with Cheney's fund.

:silly: