GM Employee Stock Fund Dumps All Company Shares
Late last Friday, GM revealed in a regulatory filing with the Securities and Exchange Commission that its employee stock fund manager, State Street Bank and Trust Co., has unloaded all company shares. According to the Associated Press (AP), “The plan’s financial manager said it began selling off shares of the Detroit automaker in late March ‘due to the economic climate and the circumstances surrounding GM’s business.'” This may help to explain the dead cat bounce GM’s stock experienced today.
Now that hundreds of thousands of shares have been dumped on the market, downward pressure has eased—at the close of Monday’s trading, GM was up nearly 21% at $2.04.
State Street said the General Motors Savings Plan now consists entirely of short-term, cash-based investments. By the end of May, the GM Common Stock Fund will be eliminated as an option for company employees, the investment manager said.
At least GM’s employees haven’t been Enroned.
Early 30s California guy driving a 97 Infiniti I30. Past cars: 90 Cavalier, 82 Skylark, 78 Courier, 61 Beetle.
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The fund manager is obviously a GM employee. He waited until the stock is almost worthless to dump it!! Look at the chart!! He couldn't have gotten out at 10? 15???
"He couldn’t have gotten out at 10? 15???" No, because the fund manager didn't have discretion to do so. They only had permission to sell the stock once bankruptcy was deemed nearly inevitable. See Jeff's post above.
Damn - The fat lady has sold all her stock. GM is absolutely reinventing the (stock) ownership experience.
Rats leaving the ship. The band plays on. Lights in the club come on. Last call for alcohol. Take your pick of the sayings.