at the time of the 1999 spin-off, the delphi salaried plan was fully funded whereas the delphi hourly plan was underfunded. delphi's original plan was to emerge from bankruptcy proceedings without terminating the pension plans. in 2009, four years after delphi filed for bankruptcy protection in 2005 it was, its pension plans would need to be terminated. as a result, delphi entered into agreements with the pbgc to terminate the delphi salary plan and the delphi hourly plan and placed both plans under the trustee ship under the pbgc. treasury did not have a role in authorizing, approving or consenting to the termination of the delphi salary plan. in 2009, in connection with the bankruptcy proceeding of old gm and delphi, general motors' company agreed to honor certain commitments into which ogm had entered including the 1999 top-up agreements. new gm had stated publicly that although the delphi bankruptcy was, quote, a very difficult situation, it felt it had made appropriate provisions at the time of the spin-off in 1999. the questionious submitted to dr. bloom primarily on the task fo

as a result of delphi, the delphi corporation bankruptcy, for example, delphi and the pension benefit guarantee corporation were forced to terminate delphi's pension plans which means that there are delphi retirees who unfortunately will collect less than their full pension benefits. delphi had underfunded its hourly pension plan and later, its salaried pension plan, well prior to filing for bankruptcy protection. a situation that ultimately threatened general motors' future success as it exited from its own bankruptcy. because general motors viewed well motivated work force at its largest supplier as critical to ensuring an uninterrupted supply chain, general motors made the commercially reasonable and necessary decision to honor certain top-up agreements it entered into in 1999 with the united auto workers and certain other unions when delphi was first spun off from general motors. sadly, many of delphi's employees did not have top-up agreements with general motors and some of those employees -- the auto team agreed that honoring the top-up agreements was a prudent business decision

been the delphi case and what means they would prefer to have over assets of delphi, particularly the poor in 10 foreign assets of delphi, and that had an impact on delphi's future and mgm's future. >> you played a role in determining either claiming were releasing of pbgc liens on general motors and delphi assets? in the bankruptcy process with respect to these pensions. >> that's not correct. >> that's what i heard you say. please clarify. >> i urge the pbgc to come to a decision and rapid manner because it had the potential to let general motors emergence. but i did not advocate for positions the pbgc, i played the role of a facilitator or mediator, if you will, between the pbgc and general motors. >> my time has expired. >> thank you, mr. chairman. >> your december 2011 report states that the treasury to for the judgment and did not explicitly approve or disapprove the gm providing [inaudible] it would appear that delphi pension matters decided by gm without treasury implements? >> yes, we reported that while the treasury played a significant role in resolving the delphi bankruptc

to perform its delphi audit. unfortunately, the audit has been stalled because they have not been able to interview three of the witnesses here today, ron bloom, matt feldman and harry wilson, who are all former members of the administration's auto task force. in preparation for this hearing, the democratic staff spoke with all three individuals and discovered they are willing to be interviewed. this is a positive development and i am glad that the audit will now be completed. the audit should complement the thorough work gao has already completed on the delphi pension issue. gao published its findings on delphi pensions in december of 2011. the gao concluded that quote, treasury deferred to gm's business judgment and that treasury did not explicitly approve or disapprove of gm providing top-ups, end of quote. those are conclusions supported by the evidence gathered by gao. today, i'm looking forward to hearing an update on the progress of the audit and i will be eager to read the final report upon completion. bu

the pbgc was the main party in making decisions about the determination of delphi's pension plans and what the impact of that was, it had an impact on general motors and i was playing essentially shuttle diplomacy between general motors and the pbgc which didn't get along well. >> and who else? >> on that issue? >> i reported to the auto team, but i didn't -- and there wasn't a -- i'm not thinking of a party that was directly involved in that. >> you didn't share any information about what the package was and developing this strategy that's in your biowith individuals of the white house and with individuals at treasury and is that what your testimony is, and i worked for treasury, so certainly i reported to the auto team. >> outside of the auto team. >> i kept george madison informed. >> in treasury outside of the auto team. and it was not part of the auto team. i was in the legal department of treasury and so i did keep mr. madison updated and he was the general council of treasury, but in terms of the white house the only people i ever spoke to at the white house was brian deiss and

delphi was just one piece of the situation that you were facing and delphi was a major parts supplier to gm that had been experiencing its own financial troubles for some time. if you save gm but delphi failed, all of your efforts would have been for nothing, is that correct? can you -- your answer? >> i think i would echo what mr. wilson said earlier. our mission was not to save general motors. our mission was to see if there were a way to facilitate the restructuring of the companies so that the american automobile industry in its entirety could continue to function at the least possible cost to taxpayer. it was general motors' decision -- judgment which we did not disagree with that if delphi had liquidated, general motors ability to reorganize would have been put seriously at risk. >> well, my time is up. i think that says it all. i think your judge am was right. we are employing over a million jobs. we're exporting. i would call that an american success story. congratulations for any role you did. >> the gentle lady's time expired. the vice chair is recognized for five minutes. >

the issue vis-a-vis the pbgc and delphi was what claims the pbgc would have in the delphi case, what liens they would purport to have over assets of delphi, particul particularly the foreign assets and that had an impact. >> you played a role in determining the either claiming or releasing of pbgc liens on general motors, delphi assets in the bankruptcy process with respect to these pensions? >> that's not correct. >> that's what i heard you say. please clarify. >> let me be very clear. i urged the pbgc to come to decisions in a rapid manner because it had the potential to hold up general motors emergence. but i did not advocate for positions vis-a-vis the pbgc. i played the role of a facilitator or mediator, if you will, between the pbgc and general motors. >> my time expired. mr. quigley? >> thank you, mr. chairman. good morning. >> good morning. >> your audit tried to identify some of the factors that went into gm's decisions to top up some pensions and not others. that's correct, right? >> it did. >> your december 2011 report states, and i quote, treasury deferred to gm's busines

had made appropriate decisions involving t delphi -- involving the delphi plan. whether the task force was involved in the decisions made by the pbgc regarding the pensions of former employees at delphi, as mr. bloom explained in 2009, and more recently before the subcommittee, the previous administration provided temporary loans to general motors at a time when our economy and financial system were already severely stressed. president obama agreed to extend that assistance, provided that companies produce a viability plan. in 2009, president obama created the auto task force to review the viability plan for the companies. the objective that guided the auto task force was to bring much-needed stability to this crucial sector of our economy. people -- keep hundreds of thousands of americans working and keep general motors as a competitive business. the president directed an auto task force to take a commercial approach to ensure that any restructuring that the companies took on only work for those liabilities to a successful operation. there were refrained from th

gm was supporting delphi because delphi was the sole supplier for critical gm parts, as a delphi liquidation would have shut down all of general motors. this was an unsustainable proposition. but for gm and for the american taxpayer. to resolve delphi's long bankruptcy agreed to various measures including providing capital and honoring the agreements they made in 1999. other commitments, including the pensions for the salary employees or other unionized employees not covered by the agreements were not accorded additional consideration. the rest of the work treasury provided a general in but not specific decisions to the matters as was recognized in the gao finding in september of 2011. in closing the restructuring was a difficult one filled with pintle trees is to minimize the human and financial cost while maximizing the public of the company's long-term success. the human cost of the gm rescue dirty come significant and tragic. those that suffered the loss of any kind have my deepest sympathies but as great as those costs were the pale in comparison to the costs. as a fiscal conservative i

general motors needed its biggest supplier, delphi, to be healthy.ghting for right now? >> i want to see the full restoration of our pensions. >> reporter: he's fighting here and in washington. >> simply put, our decades of effort for the company were considered to be valueless to this administration. >> reporter: the retirees have sued to get their pensions back. but the case is moving slowly. >> i'm poppy, i'm from cnn. when they heard we were coming to town, a group of retirees and their families showed up. raise your hand if you supported president obama in the last election. raise your hand if you're supporting president obama this year. >> no, we're not. >> he didn't bail us out. he left us behind. >> i've lost 40% of my pension, all of my health care, and all of my life insurance. for the first time in my life, my husband and i this past spring asked for the republican party ticket. >> reporter: president obama will be a hard sell for these folks in ohio, a state he's visited more times than any other, a state he's fighting hard to win again.

general motors needed its biggest supplier, delphi, to be healthy.fighting for right now? what do you want to see? >>the full restoration of our pensions. >> reporter: he's fighting here and in washington. >> simply put, our decades of effort for the company were considered to be valueless to this administration. >> reporter: the retirees have sued to get their pensions back, but the case is moving slowly. i'm poppy, i'm from cnn. when they heard we were coming to town, a group of retirees and their families showed up. raise your hand if you supported president obama in the last election. raise your hand if you're supporting president obama this year. >> we're not sure. >> he didn't bail us out. he left us behind. >> i've lost 40% of my pension, all of my health care and all my life insurance. for the first time in my life my husband and i this past spring asked for the republican party ticket. >> reporter: president obama will be a hard sell for these folks in ohio, a state he's visited more times than any other, a state he's fighting hard to win ag

treated between delphi's hourly and sal read workers as the industry was falling to pieces.pensions of 70,000 workers, and the government wound up stepping in to refund a majority of those plans, but the big problem with this, according to "the detroit news," is that gm itself took over the pensions of most of delphi's hourly workers. now, many hourly workers are in the uaw union. as you know, this union is a huge force in the industry which gm negotiates its contracts with. now salaried employees didn't get the same treatment and salaried workers say they are not getting as much money as they should be. lawmakers have a lot of questions. they want to know how the decision was made. people in the former auto industry task force have refused to answer questions up until now. carol? >> interesting. so there's still some controversy lingering from the bailout, but overall automakers have been doing pretty good, right? >> reporter: they really have. all three of the big u.s. automakers, they have been doing much better since gm and chrysler took their bailouts. all three are mak

at of delphi school, -- at oakdale high school, 83 degrees. 87 is the high on the board. 74 was the morning low. at the moment, low to mid 80's across parts of the metro area. annapolis at 85 degrees. 86 at the nation's capital. far to the north, not only drier air, but noticeably cooler. the current reading, 83 degrees in boston. 80's to the upper 70's on the map. take a look at boston with 83 degrees. the dewpoint is 43. that means relative humidity is about 30%. it is very dry. you have to go further south for high dewpoint temperatures. it is very warm and humid in places like limington. severe thunderstorm watch has been posted for most of the afternoon in southside virginia and around charlotte. coste in that position and the front will keep the focus of most of the storm -- it will stay in that position and the front will keep the focus of most of that storm to the south of us. we will stay a bit cooler than ever won in the south. for tomorrow, partly sunny and warm and muggy for the waking hours. for the afternoon, just an isolated thunder shower. hot and humid staff returns this be

s audit rrding the delphi pension decision.testifying is ron bloom, mast ufeldman and harry wilson at 10:00 eastern here on c-span3 and today on the campaign trail mitt romney is holding a town hall meeting at central high school in grand junction, colorado, this is his first town hall meeting since holding one in euclid, ohio, in may. we have coverage at 12:30 eastern. president obama travels to caesar rapids, iowa, today, he'll deliver remarks at a campaign event in kirkwood community college. the president is scheduled to discuss the economy, job creation and his middle class tax cut proposal. we have his relarkz live at 1:50 p.m. eastern right here again on c-span3. >>> shreveport in march, april in little rock, oklahoma city, may, wichita in june, and this past weekend in jefferson city. watch for the continuing travels of c-span's local content vehicles every month on book tv and american history tv and next month, look for the history and literary culture of our next stop, louisville, kentucky, the weekend of august 4th

. >> reporter: worked at auto parts supplier delphi for 34 years, a senior engineer nonunion.to you? >> the effect on me and my family is a loss of all of my health care insurance, a loss of all of my life insurance, a reduction of my pension by 30% for the rest of my life. >> reporter: he and his fellow retires feel they have been thrown under the bus. >> he didn't protect my pension. i was road kill. to be kicked to the curb and out of the way. >> reporter: really interesting to hear the perspective of all of those folks across the rust belt there. you can see the first story in our series tomorrow night. coming up my good friend dawn in new york. >> we switched roles here. we didn't get to hang out. what is ahead on the show? >> you know poppy it is nice to get out. i did the trip in 2010 during the mid terms. it is great to hear people talk about what is going on and get out of the building and listen to the american people. i can't wait to see that. >> thank you. i appreciate it. we talk about what we think people care about so much. sometimes you got to shut up and liste

bruce gump worked at auto supply sports delphi for years, a senior engineer, non-union. and my family is a loss of all of my health care insurance, a loss of all of my life insurance, a reduction of my pension by 30% for the rest of my life. >> reporter: he and his fellow delphi retirees think they have been thrown under the bus by the obama administration. >> he didn't protect my pension. i was just road kill and to be kicked to the curb and out of the way. >> fascinating. poppy harlow reporting. tomorrow upony begins her road trip in janesville, wisconsin. please be sure to join us. >>> we asked you to talk back on one of the big stories of the day. we asked you is the health care mandate a tax or penalty? you responded in droves. crest christopher says it's only a tax or penalty if you don't have health insurance. there will be multiple options available for everyone. the massachusetts plan where i live is incredibly popular and we have incredibly high coverage rates. >> rita says this is a tax increase. it doesn't concern me. after all i have health insurance. fortun

gold, delphi, apple, not clear from these reports whether that's a long position, short position, couldequity, debt derivatives and the company is not saying. i called them. they refused to comment what's going on in terms of them and chesapeake. there is a lot of buzz, it does, indeed show up in holdings. first glance way long on the stock. >> you wouldn't have any idea though he may have owned in some capacity in the month of june. we have no way of noticing whether loeb is in cheese peek. >> he could have sold down exposure, maybe had a long position and sold it yesterday and today. that's entirely possible a lot of negative news in terms of recent doj, allegations of price fixing with chesapeake and encana. as you know there's been management issues there. they recently shook up the board and ceo lost the chairman title. a lot of noise around it. it has been a momentum trade. it would make a lot of sense for somebody an active stock investor to get in and out quickly. we don't know what loeb's motivation is. the reason it caught fire as a story is loeb recently waged a successful pr

crew responded to the calls along new hampshire avenue near delphi road in silver spring last night. no passengers were on the bus. firefighters quickly got the fire under control. it did cause some traffic delays while firefighters put out the fire. maryland department of transportation is now investigating the cause of that fire and this is at least the sixth ride on bus fireáhp &h% past three years. >>> this morning d.c. police need your help to solve a burglary at a library. police are looking for five people you see in this surveillance video here. detectives say those suspects broke into the francis a. gregory neighborhood library along alabama avenue in southeast. this happened last month. they say the suspects took several pieces of computer equipment. if you know anyone in this video you should contact d.c. police immediately. >>> all right. it's 5:36. 76 degrees. a consumer warning this morning for those of you still waiting for you power to be restored. >>> plus, you could be in store for a fireworks show of a different sort this independence danchts another sunny day in s

. >> our three largest employers are all automotive companies, chrysler, general motor, and delphi. >nd duane at their neighborhood bar, two friendses who blue collared careers have follow add similar path but whose politics have not. do you agree who the next president is? >> no. i'm all over obama. >> and i'm leaning toward mitt romney. >> reporter: why obama? >> because i have a job today. >> reporter: he credits the auto bailout. they call kokomo the little detroit. despite that duane doesn't think president obama deserves another four years. >> we're not any much better off than what we were two and a half years ago. >> you cash add check. >> yes, i'm thankful for that. >> i'm better off. >> reporter: kokomo's unemployment topped 20% in 2009 when gm and chrysler went bankrupt. it's down to 9.7% when we visit. why do you think romney would be better for the u.s. economy right now. >> think he can get more jobs. >> romney might be able to create jobs but they're going to pay $7 or $8 an hour. you know, hospitally and truly i can't support my family on $7 or $8 with no benefits. >>

how serious are the other side of her is that physicians cannot afford to this for delphi and pay compelling? is that a problem we've had in your profession? >> i think it's worthwhile to talk about how we pay and how we set salaries. we look at what the average salary is across the united states and we try and pay an average of the 90th percentile of that. savannas pediatricians don't get paid the same as neurosurgeons do, but we pay according to specialty gun expertise the individual has and what the national standard for that specialty areas. >> to what extent do medical malpractice lawsuits and premiums when places like the cleveland clinic and is the situation getting better or worse? >> well, tort reform is some team that is clearly not part of the affordable care act. and i think it's an important and we're going to have to eventually deal with. in ohio, we have had tort reform and it has decreased our cost of this very significantly. we think that there is estimated about 4% of the health care cost in the united states is attributable to malpractice and people trying to avoid it. >>

delphi management president scott black joins us now. to you. thank you. >> so we're going to hear from ben bernanke later this week and i'm curious what you think we will be hearing. >> i ultimately think you're going to see qe3. if you look at the fed balance sheet it's about 2.9 trillion and with operation twist behind us, it was up less than 1% year over year. i realize that rates are extremely low and he's pushing on a string, but short of any fiscal policy which is doubtful in the congress the best alternative is some sort of quantitative easing again. >> you think we're going to hear that this week? that's your gamble? >> i really think so. i'm not a trader but the point being the economy is so slow, and the fact that china's been slowing and europe's still in crisis, they've got to do something to try to push economic growth in this country. >> right. scott, you know, we teed this up segment by saying that by historical standards the s&p is cheap. i know you're not a trader but is this cheap or is it a falling knife? >> no, i thi

our comments are specific to h.r. 6089 delphi forest management act of 2012 but we do want to acknowledge the attention given to all three bills is important in bringing attention to the continued degradation of america's forests lands caused by drought and other areas. this is to the communities on those lands and infrastructure. as retirees we clearly feel action is needed and rapid, efficient, collaborative and which pushes the envelope in terms of procedures and authorities. we all know that increasing budgets is not a fix and we also accept the potential for the budgets to be decreasing, so in a legislative approach, they're has to be a focus on public-private partnerships, reduced process and much greater recognition of this crisis. we think that h.r. 6089 supports this approach. i do want to acknowledge the excellent work of the agency so far in address and thus the forest service approach with bark beetles strategy, the landscape restoration project and use of the integrated budget pilot should go a long way towards increasing the accomplishment the forest service blm work on the

had made appropriate decisions involving t delphi -- involving the delphi plan. whether the task force was involved in the decisions made by the pbgc regarding the pensions of former employees at delphi, as mr. bloom explained in 2009, and more recently before the subcommittee, the previous administration provided temporary loans to general motors at a time when our economy and financial system were already severely stressed. president obama agreed to extend that assistance, provided that companies produce a viability plan. in 2009, president obama created the auto task force to review the viability plan for the companies. the objective that guided the auto task force was to bring much-needed stability to this crucial sector of our economy. people -- keep hundreds of thousands of americans working and keep general motors as a competitive business. the president directed an auto task force to take a commercial approach to ensure that any restructuring that the companies took on only work for those liabilities to a successful operation. there were refrained from th