Sunday, December 11, 2022

Pension fund bailout is the sequel to a Hollywood movie.

 $36 billion in federal funds has been paid to labor union pension funds.  The funding is from the American Rescue Plan, a $1.9 trillion coronavirus relief package that was signed into law in 2021.  Some details are included in the following article:

$36 Billion Union Pension Fund Bailout

Note that the majority of funding is going to the the Central States Pension Fund.  This organization has a colorful history.  It is a multi employer pension fund created through collective bargaining agreements with the Teamsters Union.  During the 1950s, 1960s, and 1970s the Central States Pension Fund was used as a source of loans and funding for real-estate development.  It became famous for loans and funds provided to Las Vegas hotels and casinos.

This episode of union pension funding of Las Vegas casino expansion was the basis for the  the 1995 Martin Scorsese film Casino.  Although this film is listed as a drama, all who are familiar with the Chicago mob's Las Vegas adventures will realize that the film is very close to a documentary.  Some of the film's main characters are as follows:

Sam 'Ace' Rothstein, a film depiction of Frank Rosenthal, also known as "Lefty."

Nicky Santoro, a film depiction of Anthony Spilotro, also known as "The Ant."

Andy Stone, a film depiction of Allen Dorfman.

Allen Dorfman was the conduit for funding of the Las Vegas investments through the Central States Pension Fund.  Dorfman was a Chicago mob associate who rose to power due to his father's previous association with organized crime.  Dorfman became a close confidant of Jimmy Hoffa.  On January 20, 1983 Allen Dorfman was murdered.  The news clips in the following link provide the details:

Allen Dorfman's murder

Note that the Federal Government bestowed on itself the authority to spend $1.9 trillion for coronavirus relief under the American Rescue Plan.  Then the Federal Government bestowed on itself the authority to pay the Central States Pension Fund $36 billion from the coronavirus relief fund.  You might find it interesting or amusing that when the mob was making the investment decisions for the Central States Pension Fund they never needed a government bailout.