GM Employee Fund Manager Dumps all GM Shares

[billyoc]

Yeah, THIS looks great... :eyes:

April 25 (Bloomberg) -- State Street Bank and Trust Co., manager of a 401(k) investment fund for General Motors Corp. employees, has sold the majority of its shares in the automaker on concern that the stock could lose all value in a bankruptcy.

State Street sold 75 million shares, or about 12.4 percent of GM outstanding common stock, between March 31 and yesterday, Julie Gibson, a GM spokeswoman, said yesterday in an interview. It held most of those shares in a 401(k) fund for 29,800 employees and retirees. The fund is one of several options available in the GM employee-retirement savings plan.

The investment company held a total of 103 million GM shares at the end of the year, according to Bloomberg data.

State Street notified employee investors of the move in a letter, saying that the trustee is authorized to sell the shares if there is serious concern about GM’s viability as a going concern or if there is no short-term possibility of recouping substantial proceeds from the sale of the stock in bankruptcy.

...

http://www.bloomberg.com/apps/news?pid=20601087&sid=a99lbsWMauyw&refer=home

[SoCalDem]

1. Enron employees would agree with the sales, though..

If the company files, the shares are even more worthless than now....but what did they buy instead??

Shares of Kraft Mac 'n Cheese?

Everything's pretty much crap these days:(

[billyoc]

2. Municipal and Treasury bonds, hopefully.

[ColbertWatcher]

3. GM should not be allowed to file for bankruptcy protections after all the shit ...

... they've been pulling lately.

It doesn't seem fair.