Private emails detail Obama admin involvement in cutting non-union worker pensions post-GM bailout

The exchanges go on to clearly demonstrate that the administration had a controlling stake in GM’s management timeline.

Borst replied that GM had not “begun conversations with the UAW pending hearing back from you and the PBGC. We can begin that dialogue but our reading of the benefit guarantee is clear that it’s for the benefit of the retirees and not the PBGC. The UAW may not be available to us this week as GM is in the summer shutdown.”

Feldman responded by reminding Borst the steps required to eliminate Delphi’s pension plans.

“Keep in mind we need the PBGC’s help to terminate this plan so we will have to deal with the PBGC,” wrote Feldman. “If you think there is a way to cause its unilateral termination (outside of Delphi going down an 1113 process) let me know.”

Another email chain TheDC has obtained shows that Treasury Secretary Tim Geithner’s employees were advising GM executives and communications officials on how to craft their public messages and press releases.

In response to GM sending her a draft of a press release about the company ceasing operations at several factories nationwide, the Treasury Department’s Jenni Engebretsen wrote to GM officials on Friday, May 29, 2009: “We would ask that you move the reference to Treasury down to the third paragraph, taking it out of the lede. Please let us know if this presents any issues.”

GM’s director of policy and Washington communications replied to Engebretsen: “No problems. Done.”

Engebretsen then asked: “If there is an updated version at some point over the weekend we’d appreciate a final copy. Many thanks.”

These emails show the Obama administration was not only active in guiding GM executives’ decisions, but Treasury Department officials were influential in crafting GM’s message to the public.

With Engebretsen asking GM to move references to the Treasury Department out of the press release’s lede paragraph, it suggests the Obama administration wanted to publicly downplay its role in the GM bailout and the Delphi workers’ subsequent loss of their pensions.