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GM shares too risky for own employees?

Posted Nov 26 2008, 10:33 AM by Kim Peterson
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General Motors shares are so risky that even its own employees are discouraged from buying them.

Workers have been blocked from buying GM shares through company 401(k) plans. The reason? GM's "financial difficulty," a spokeswoman told the Pensions & Investments newspaper.

GM wanted to register more shares of stock for 401(k) participants to buy. But the bank in charge of 401(k) plans refused to approve the move.

A spokeswoman said the bank must "focus exclusively on the best interests" of the 401(k) participants.

"It is almost too surreal for words," said CNBC analyst Paul Kedrosky. "Next up, I'm guessing, is that American Airlines employees won't be allowed to fly on AA planes -- too damn dangerous."

GM shares are up 17% today to $4.17, even though Goldman Sachs cut its auto sales outlook today.

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Comments

 

EMPLOYEE SHOULD BE ABLE TO BUY THE STOCK IF THEY WANT TOO IT IS THERE MONEY

R SMITH (Posted 11.26.08 11:15 AM) Report Abuse

It is driving me crazy that so many people do not know the difference between "there" and "their"!  

jdoe (Posted 11.26.08 12:34 PM) Report Abuse

then you ought to stay off message boards, etc. the abuse the english language suffers on the internet is truly horrific.to paraphrase professor higgins, 'why can't the americans teach their children how to write?'

doctor invincibilis (Posted 11.26.08 12:50 PM) Report Abuse

Instead of focusing on the issue at hand some high browed people are worried about spelling. Go to a blog about grammar and amuse yourself.

I for one will keep an eye on the GM stock to see how far it falls. They will be bailed out and stock will go up.  

David Hester (Posted 11.26.08 1:05 PM) Report Abuse

ever wonder about how much of the overall mess we're in is a result of the general 'dumbing down' of america? i know i do.

doctor invincibilis (Posted 11.26.08 1:22 PM) Report Abuse

If they didn't have so many unions and also have the balls to say NO instead of letting the UNION tell them they wouldn't need this bailout and their stock would be just fine

c barge (Posted 11.26.08 1:25 PM) Report Abuse

Not offering GM stock in a 401K plan is a protect our backside move.  Many companies used to match employee contributions with their own stock, but most have moved away from that.  In GM's case, with the company depending upon the government to bail them out or face shutting down as early as the end of this year, not offering GM stock is a prudent move.

Roland (Posted 11.26.08 1:26 PM) Report Abuse

GM & Ford went up  this week. If and when the GOV bails out the firms how far does anyone thinK the stock will go?

Frank (Posted 11.26.08 1:39 PM) Report Abuse

And they want us (taxpayers) to bail out there pensions ? YEA RIGHT

George (Posted 11.26.08 1:39 PM) Report Abuse

GM Employees have a special price to purchase an Auto that they assembled.  No employee should be elgible to receive any employee benefits without showing proof of ownership of a GM transportation vehicle that they assembled (assuming they need transportation). Stock benefits show that they support their product and there should be no restriction on its relationships.  Somebody has special interest here.

NUMMER ADDERTON (Posted 11.26.08 2:08 PM) Report Abuse

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