Even later update -- Earlier posts read as though Millard's investment plan had been entirely implemented, which we don't believe to be the case. A Congressional staffer said the PGBC had refused to say how much of the fund had already been reallocated under Millard's guidelines. But a PGBC spokesman told BusinessWeek none of it had and that the agency would "work with our board to decide whether these contracts should be terminated and whether strategic partnerships fit into the board's investment approach going forward."
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The original version of this post was also somewhat unclear on the specifics of the various investigations into Millard. Both houses of Congress are investigating Millard and a group of senators requested a criminal investigation as well.
Remember Charles Millard? He's the former Bush-appointed director of the Pension Benefits Guaranty Corporation, and we expect to be seeing a lot more of him as congressional investigations into his brief but significant tenure at the agency gathers steam, starting with a scheduled appearance next Wednesday.
Some background: the Pension Benefits Guaranty Corporation insures a portion of the retirement funds of 44 million Americans to protect their savings accounts from the capriciousness of market conditions. Somehow, by the perverse illogic that defined the financial services industry of the past few years it came to pass that this fund would be run by a former Lehman Brothers executive who would devise a plan to plow the majority of its investment portfolio into the volatile stock market and the massively overheated real estate market under the pricey guidance of financial advisers at Wall Street's most prestigious investment banks, such that some such that billions of dollars would vanish in the course of months. An honest mistake, or was unethical behavior involved?
The Office of the Inspector General conducted an audit of Millard, who spearheaded this effort, and found no evidence he'd committed any actual crimes -- but enough "clear violations" of agency ethics rules to alarm Congress, which released the OIG's draft report yesterday and announced an investigation of Millard and said it had requested a criminal probe of him as well.