in september of 2007, delphi filed a reorganization plan with the delphi bankruptcy court. as part of that, gm and delphi agreed to transfer part of the plan to gm's hourly plan. and delphi was to retain all of their pension plans, including the salary plan. in april of 2008, the reorganization deal fell through. however, in the lighter half of 2008, delphi still anticipated to the reorganize, maintain it's salary plan, and merge the hourly plan into the gm hourly plan. in september of 2008, delphi and gm with the approval of the delphi bankruptcy court plan to transfer up to $3.4 billion of net liabilities from delphi's hourly plan to gm's hourly plan in two phases. the first $2.1 billion was transferred the same month in september of 2008. the transfer eliminated pbgc's lien on behalf of the hourly plan. the subsequent downturn in the auto markets left gm unable to pay for taking the remaining organization of the hourly plan that the second transfer never occurred. in late -- excuse me -- in late july 2009, the delphi bankruptcy of court approved delphi's modified plan ca

governing the creation of delphi in 1999 and in the restructuring during the delphi bankruptcy proceedings in 2006. to signal out and renamed on this position during the 2008 restructuring would have harmed the relationship between the union and the company. let me expand on these points a bet. the combined actions of the bush and the bomb administrations to support the auto industry is likely to be assessed as one of the most important and effective steps taken during that perilous time to avoid the great recession from turning into a depression. the 3 million jobs saved in 2009 were probably expanded and subsequent years. the actions also avoided setting off a cascading set of costs and losses of revenues which would have resulted from increased employment costs between $8,000,000,000.19 $5 billion. -- $8 billion and $25 billion. it would have reduced revenues between $59 billion and $170 billion. the effects of the loans and the structural adjustment and the additional concessions from workers and creditors, the leadership changes put in place, and the joint venture with fiat, have posi

the delphi losses? i know as independent, i'm responsible for the whole amount. >> i'm sorry, you are asking -- >> well, we are saying -- we are giving that we're willing to write off. >> i don't anyone is willing. i think mr. ikenson explained it. the real issue would be if the stock value rising to the level to recoop the full investment. then you would get it. we can't control the stock market. that's where the losses come. i think the direct loans has been paid and there was a debate about whether the dollars came from. >> i understand that. >> the loans will be repaid or have been repaid. it's the loss on the direct investment may come if -- if the current value of the stock stays the same. i think that's the situation. >> i would go back to the original purpose of the hearing today that was to talk about the government injecting itself into a free market. again, making -- whether we determined right or wrong as the american people to determine. was there money spent properly, in the right way, at

during the last years of delphi house he creates and ornamental farm in monticello and i am sure it is a slightly complicated plan but these are the past or the roads that go up to the mountaintop. he ascends the visitors on that complicated network and a magic use been three days writing to the virginia untamed forest and revive there but who you plan to see is a drive by going straight up to the house. and is on a detour up to the mountain so that about halfway up he introduces the third one of agricultural element. so then enter a carefully planned road past the vegetable tariffs then into the flower beds. it is a journey from the rugged to the refined and attorney from the wilderness to civilization. we have to bear in mind he designs this while american is stock between britain and france and in order to avoid war and pressure, but they are introducing what expands of foreign trade. suddenly it is incredibly important again. also then he draws this switches like 10 necklace that is just below the pleasure ground. of but he also created a of garden for his retirement that have scen

because of what we did, the delphi employees in set of getting their pension and health insurance, they get a pbgc pension. host: let's go to a caller. caller: let's go back to your statement that the vast majority of corporations are underfunded in their pension plans. this could be nick in the bud if we had congress and the white house -- this could be nipped in the bud if we have congress and the white house establishing that no bonuses would be paid to if the pension system is underfunded. perhaps not only congress and the ordaz are sleeping at the switch, but is it -- and the white house are sitting at the switch, but also the unions and other organizations who are not getting the pension plans properly funded. guest: i have to tell you that there are a lot of folks who agree with that in some way, shape or form. there are a lot of folks that think if the pension plan is underfunded, then shouldn't something happen? and also tell you that over the starting with compl, the legislation that created the ,bgc in the mid-1970's including the federal government saying if you're going to

because of what we did, the delphi employees in set of getting their pension and health insurance, theybgc pension. host: let's go to a caller. caller: let's go back to your statement that the vast majority of corporations are underfunded in their pension plans. this could be nick in the bud if we had congress and the white house -- this could be nipped in the bud if we have congress and the white house establishing that no bonuses would be paid to if the pension system is underfunded. perhaps not only congress and the ordaz are sleeping at the switch, but is it -- and the white house are sitting at the switch, but also the unions and other organizations who are not getting the pension plans properly funded. guest: i have to tell you that there are a lot of folks who agree with that in some way, shape or form. there are a lot of folks that think if the pension plan is underfunded, then shouldn't something happen? and also tell you that over the starting with compl, the legislation that created the ,bgc in the mid-1970's including the federal government saying if you're going to have a p

bruce from the delphi retirees association. the george maverick professor of management and at the massachusetts institute of technology. and a senior analyst. thank you for being here. the custom of the committee is to swear everyone in. do you solemnly swear to affirm the testimony about to give will be the truth, the whole truth, and nothing but the truth? everyone answered in the affirmative. your up first. >> good afternoon. i am disgusted direction of the center for trade policy studies. since 2009, i have followed the events surrounding the auto company bell labs. i am grateful for the opportunity to share my concerns of the implications. the views expressed today are my honor should not be construed as representing the cato institute. the administration is pitching the narrative the ballots were successful. the evidence in support of the conclusion is limited to the fact that gm has been profitable and that chrysler has repaid much of its debt. calling the bela successful is to whitewash the diversion of funds by two ad