The trustee of the GM Employee 401(k) plan has dumped all 75 million shares over the past 3 weeks for under $2 a share . That leaves very little doubt that GM is going into bankruptcy.
– If this was done based on knowledge of a definite decision to proceed with bankrupcty, someone is in serious legal jeapordy. It seems unlikely they aren’t aware of the situation and the law. Trading on non-public information is a crime called “insider trading”. “Tim Geithner told us it is okay” is not a legal defense.
– if your employer holds much of your 401(k) plan in company stock, you’re working for a bad employer. GM (until recently) required 1/2 of all 401(k) contributions to be in GM Stock.
Tags: GM