Delphi/GM's retirees sue State Street; Michigan's Conyers "pissed"

[IdesOfOctober]

Workers and retirees at Delphi Automotive (a GM spinoff) have announced yet another ERISA lawsuit against State Street (signifying that these workers and retirees already know that their plan is infested with these cockroaches):

http://www.google.com/search?hl=en&lr=&q=delphi+%22state+street%22+pension+workers+gm+sues

State Street is using much the same defense it has used with the Polaroid ERISA case: "just following orders".

If the trustee of a pension plan is a mere automaton, and not a plan fiduciary that exercises discretion, then why pay all those exorbitant fees? For instance:

1. State Street Bank & Trust was paid $3,444,178 by GM for custodial services in a single plan year, for a single plan (and GM has many plans; this one is for salaried employees), as shown on this Form 5500's Schedule C: http://www.freeerisa.com/5500/InstantView.asp?mainID=11408952&Show=DOL_C

2. See also that plan's Scheudle P: http://www.freeerisa.com/5500/InstantView.asp?mainID=11408952&Show=DOL_P&Rep=1

3. The hourly-rate employees' pension plan paid State Street $6,982,131 that same year: http://www.freeerisa.com/5500/InstantView.asp?mainID=11346873&Show=DOL_C and http://www.freeerisa.com/5500/InstantView.asp?mainID=11346873&Show=DOL_P&Rep=2

4. The Delphi stock purchase program for U.S. employees? Guess who: http://www.freeerisa.com/5500/InstantView.asp?mainID=10567634&Show=DOL_P&Rep=1

5. The Delphi retirement plan for salaried employees? Gusss who: http://www.freeerisa.com/5500/InstantView.asp?mainID=11389590&Show=DOL_C

6. Delphi hourly employees' plan? Guess who: http://www.freeerisa.com/5500/InstantView.asp?mainID=10488679&Show=DOL_P&Rep=1 and http://www.freeerisa.com/5500/InstantView.asp?mainID=10989376&Show=DOL_C

And so on, and so forth. You get the idea. To see whether your plan also has a State Street or CitiStreet infestation (CitiStreet is State Street's 50/50 joint venture with Citi), follow the directions in this thread: http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=364&topic_id=2359814&mesg_id=2359814

Congressman Conyers, the ranking Democrat on the House Judiciary Committee, and former Chair of the House Government Reform Committee, is said to be "pissed" that State Street has taken this line with so many of his constituents.

Stay tuned.

Ides

[DemReadingDU]

1. GMAC

General Motors Acceptance Corp (GMAC) writes the car loans for General Motors (GM).

Eariler this year, GM sold 51% of GMAC to a group of investors led by Cerberus Capital Managment, which also includes Citigroup and Aozora Bank.


Is GMAC infested with cockroaches?

[IdesOfOctober]

2. Easy to check...

... http://www.freeerisa.com/5500/Form5500.asp?mode=SEARCH

Just type GMAC into the search box, and you're on your way to finding out.

Schedules C and P are the key schedules to check. Let us know what you find out.

Ides

[DemReadingDU]

4. it's not the same

there is GMAC, but it's not General Motors Acceptance Corporation


edit to add: GMAC Financial Services is the name for the company that does the car loans

[IdesOfOctober]

3. GM's retiree benefits website...

http://www.gm.com/retirees/benefits.html

In case you need to look up the official name of your specific GM-affiliated plan.

Ides

[CorpGovActivist]

5. Top 50 Employers in TN; Help Ford Cork Corker

http://www.state.tn.us/ecd/top50empl.htm

http://www.rasmussenreports.com/2006/BalanceofPower.htm

By cross-referencing the Top 50 Employers in Tennessee with the information available at FreeERISA, you can help the safety of Tennessee voters' pensions become one of the policy issues that helps push Ford over the top:

http://www.freeerisa.com/5500/Form5500.asp?mode=SEARCH

- Dave

[CorpGovActivist]

6. Has Jim Webb Looked into Allen's Tenure as Governor of VA...

... and the role that might have played in State Street winning the state's public pension fund business?

http://en.wikipedia.org/wiki/457_plan

https://vadcp.gwrs.com/tl001/SplashAuth.asp

See where State Street cites Virginia's public pension fund as a client, when bidding on similar work in MA: http://www.shareholdersonline.org/keydocs.htm (specifically: http://www.shareholdersonline.org/pdf/PRIM%20Proposal.pdf on page 3 of 418 of this large PDF)

See also the "Report to the Massachusetts Treasurer Regarding State Street's Bid," also available at: http://www.shareholdersonline.org/keydocs.htm

- Dave

[IdesOfOctober]

7. Michigan and Washington State, too!

That's a nice little nugget.

Lots of State Street clients listed out - both private sector and public sector.

[Gwerlain]

8. It seems another client...

was United Airlines' employee stock ownership program. It seems that State Street isn't responsible for giving them any advice either, according to the dismissed lawsuit against State Street; UAL settled with the retirees, State Street got their part of the lawsuit dismissed. UAL must be pissed; their buddies left them to twist in the wind. I wonder just how that dismissal came about? What does the judge think State Street was being paid all that money for?

[IdesOfOctober]

9. The casefile is online...

... or at least enough of it to get the UAL employees'/retirees' point of view:

http://www.hagens-berman.com/united_airlines_esop_lawsuit

Ides

[Gwerlain]

10. Yep, that was where...

I found it.

I'm thinking about googling the judge. :D

[IdesOfOctober]

14. If memory serves...

... the UAL case hit the Appeals Court. Other, similar cases are coming up through the courts (against State Street) in other Circuits.

If there is a split in the Circuits, the Supremes my grant cert.

Meanwhile, the Bushy Bank that nobody has heard of will be front and center in a blockbuster Supreme Court case - assuming it's not front and center in about a half dozen committee hearings, on both sides of Capitol Hill, long before the Supremes get hold of it.

Ides

[Buttercup McToots]

11. Are you...

The Dems October surprise?

http://www.rawstory.com/news/2006/GOP_sources_losing_hope_of_victory_1017.html

snip
One pointed to rumors on the Hill that there is the possibility of a Democratic October surprise. " Foley wasn't their surprise. That just kinda happened, but people are saying they do have one of their own."

???

[IdesOfOctober]

12. I could say that...

... "surprise" is my middle name, but it's "of".

; )

Ides

[Buttercup McToots]

13. Cheeky Lad

:hi:

[IdesOfOctober]

15. All four o' em...

... are smiling at the White House. (Another advantage to the kilt.)

; )

Ides

[IdesOfOctober]

21. Incoming Virginia Senator Jim Webb should look into this...

"See where State Street cites Virginia's public pension fund as a client, when bidding on similar work in MA: http://www.shareholdersonline.org/keydocs.htm (specifically: http://www.shareholdersonline.org/pdf/PRIM%20Proposal.pdf on page 3 of 418 of this large PDF)"

This 418-page is crammed full of useful information.

For example, on page 2 of 418, and running to page 3, State Street cooed to the Massachusetts Treasurer and her fellow pension board members in their cover letter:

"Our experience in California, Maine, Michigan, and Oregon in the intricacies of communicating and servicing plans both as startups and as existing plans will benefit the Commonwealth. We have experience in establishing and servicing plans with local government components and multiple groups under an integrated structure just like your program will be.

State Street's client list includes large corporate and governmental plans. These include Chevron, American Bar Association (ABA), Lockheed Martin, PEPSico (sic), UPS, Sears, and Michigan.

Within the last two months the State of Virginia 457 Plan has selected us to provide investment management for 10 daily priced options using our indexed products designed for institutional clients and the State of Washington has selected us to provide administration for their $1.4 Billion 457 Plan."

You can almost hear the infomercial staple: "but WAIT! - there's more, if you act now, you too can receive this bundle of campaign cash."

The MA Treasurer at the time, Democrat Shannon O'Brien, went with someone else.

Ides

[wishlist]

16. State Street was mentioned as future trustee for Soc Security investments

In articles about instituting Social Security 'privatization' with personal investment accounts, State Street has been prominently mentioned as one of the fund managers or trustees that the govt might use. That figures.

[IdesOfOctober]

17. State Street's Shipman and Carter wrote the book...

... literally:

http://www.google.com/search?hl=en&q=shipman+carter+promises+to+keep+saving+social+security%27s+dream

Carter is the former Chairman and CEO of State Street, and now is the Chair of the NYSE:

http://www.google.com/search?hl=en&lr=&q=marshall+n.+carter+%22state+street%22+new+york+stock

Shipman is a former top executive at State Street, and is Co-Chair of the Cato Institute's Project on Social Security Privatization:

http://www.google.com/search?hl=en&lr=&q=shipman+cato+social+security+%22state+street%22

Beginning to understand why State Street has leaned on David A. Smith and his partner?

Ides

[Buttercup McToots]

18. Good Night

Brave Boys...
:) \

Tomorow...
Off tae bed...

[Buttercup McToots]

19. Good Morning

:)

[IdesOfOctober]

20. Send your very best Scottish war cry up...

... tomorrow. David is due in court on the trumped-up "criminal trespass" charge, stemming from the panic button push of Andy Card's high school pal, State Street Chairman and CEO, Ron Logue.

Ides

[Buttercup McToots]

22. The Roar of the Mighty Lion...

So let us rise an` face oor foe,
An` fight the battle toe to toe,
Wit dirk an` dagger an` claymore as weel,
We’ll welcome the Thieves tae a Scottish hell.

It matters now, more than ever before,
Tae hear the mighty Scottish Lion roar,
Don’t let them lead us a merry dance,
This could be our only chance...

Strength and might I send tae David as he faces the giants...

[Buttercup McToots]

23. Ides

Please let us know how it is going and what is happening,k?

[Buttercup McToots]

24. bump

up
Where are ye Ides?
Is all ok?