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September 29, 2002

S&P Companies in Pension Deficits

Here is where the decline in the stock market is hitting the bottom line of corporations-- in shortfalls in their pension obligations. Just last week a Morgan Stanley analyst cautioned that IBM may need to contribute up to $2.3bn to its pension plan in 2004, prompting a decline in the computer giant's stock.

The next step will be to see companies taking their bottom line problems out on their workers bottom lines-- seeking to cut pension fund payments and even using bankruptcty and other corporate reorganizations to escape their promises to their workers.

The nasty part of the stock market bubble collapse is only just beginning.

Posted by Nathan at September 29, 2002 04:05 PM

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