That soft, creamy filling in Hostess Twinkies, Ding Dongs and other semi-toxic snacks? Turns out it’s the American taxpayer.
It may not happen immediately, but the Pension Benefit Guaranty Corp. may well be handed responsibility for paying Hostess Brand obligations to its 5,600 bakers. The PBGC insurance fund – akin to the Federal Deposit Insurance Corp. – last month reported a $34 billion deficit. Does this sound familiar?
The bakers took the blame for killing the company when members went on strike last month.
The charge ignores the fact Hostess owed the confectionery workers union pension fund $1 billion when it filed bankruptcy in January of this year, and that the company continued to skip payments. Monday, the Wall Street Journal revealed that money that should have been dedicated to pensions was instead used for operations.