GM shares too risky for own employees?
Posted
Nov 26 2008, 10:33 AM
by
Kim Peterson
Rating:
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.
