Yahoo Finance is reporting GM employee stock fund dumps all company shares.
The manager of General Motors’ employee stock fund has sold off all remaining shares of the troubled auto maker, which is closing plants and slashing costs in a bid to avoid bankruptcy.
General Motors revealed in a regulatory filing late Friday that its employee stock-purchase plan has unloaded all shares of the company in favor of short-term and money market investments. The plan’s financial manager, State Street Bank and Trust Co., 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.”
GM Weekly Chart
click on chart for sharper image
GM started dumping in March, the first blue circle in the above chart, and just now finished. Congratulations of sorts go to GM and State Street Bank and Trust Co., the plan’s financial manager, for one final display of ineptitude.
Is this a case of better late than never, or a case of why even bother?
What it does show is why company plans, especially plans for struggling companies ought not be in their own shares. GM employees will be out of a job and any shares owned are essentially worthless.
Now, in all likelihood, GM’s pension plan will be dumped to the Pension Benefit Guaranty Corporation (PBGC) which is another way of saying US taxpayers.
Mike “Mish” Shedlock
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