This sure ain't a good sign. Bloomberg reports that the Fund which manages GM employees 401ks just dumped all of GM shares because they would be worthless in bankruptcy:
State Street Bank and Trust Co., manager of a 401(k) investment fund for General Motors Corp. employees, has sold the majority of its shares in the automaker on concern that the stock could lose all value in a bankruptcy.
State Street sold 75 million shares, or about 12.4 percent of GM outstanding common stock, between March 31 and yesterday, Julie Gibson, a GM spokeswoman, said yesterday in an interview. It held most of those shares in a 401(k) fund for 29,800 employees and retirees. The fund is one of several options available in the GM employee-retirement savings plan.
The investment company held a total of 103 million GM shares at the end of the year, according to Bloomberg data.
And you see that percentage? 12.4% of all outstanding common stock, now that has gotta hurt. The stock is still valued at $1.69 so existing shareholders will assuredly take that as a major indicator.
This is becoming painful to watch.