Even GM Employees Won’t Invest In GM
It was announced today that State Street Bank, manager of the pension fund at General Motors, has liquidated 100% of the equity positions in General Motors stock. GM employees no longer have a single dollar invested in the well-being of the company, and they’re the only ones talking the company up.
If this isn’t a complete sign of failure I don’t know what is. There is even less reason now for the government to keep GM afloat and financed, but this could be a breakthrough in getting some positive results for the company.
At present the company has until June 1 to get renewed and deepened concessions from bondholders and UAW members. Without an agreement, the company will face bankruptcy as it struggles to make payments without cash nor a line of credit.
I think the stock dives even lower on this news. The hourly and salaried workers at General Motors have little motivation, and now zero vested interest, in keeping the company afloat. This is really the beginning of the end, and though I’m glad GM employees were able to liquidate and get SOMETHING for their shares, the ride is over.
Move on, folks. There’s nothing to see but a huge unemployment report coming this summer.
Though GM employees are not investing, but they’re the only ones talking the company up. It is very interesting and also very successive.