Rats Leave the Sinking Ship: Lutz & Friends Dump GM Shares
Automotive News [sub] reports that Vice Chairman of Global Product Development, Bob Lutz, has cashed in his GM chips, selling all his remaining shares in his bankruptcy-bound employer. The ex-Car Czar dumped 81,360 GM shares, slipping $130,989 into his pocket. The sale follows Lutz’s recent filing in Chrysler’s bankruptcy case: an effort to settle an unspecified, but most likely, pay-related claim. Meanwhile, “According to the [SEC] filings, the five other executives who sold all of their GM stock holdings were: Lutz’s successor, Thomas Stephens; GM North America President, Troy Clarke; Chief Information Officer, Ralph Szygenda; manufacturing chief, Gary Cowger; and head of European operations, Carl-Peter Forster.” Apparently, insider trading laws had prevented this mass display of confidence in GM previously. But a “trading window” opened on Monday that allowed the transaction without any legal repercussions. Morally, well, that’s a different story. Bottom line: GM C11 by June 1.
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"Why would that not be insider trading?" It is only insider trading if: 1) he knows something the rest of us don't know, or 2) he purchased stock for less at some time during the last 6 months. The second seems unlikely. Would a Floridian buy a snow blower in April? As for the first, every sentient being in the known physical universe knows explicitly that GM is totally and completely bankrupt and that it will file C11 at the end of this month. There is no secret sell side knowledge. Pete Moran has the better question.
And yet, it's supposed to be some sort of boon to the UAW to take this "equity" in lieu of cash to pay for VEBA.
@ per Someone covering a short position perhaps? Ah yes, maybe I should have said, what idiot criminal gambler bought those GM shares. (If they're covering a short, wouldn't they just a bit longer?)