We didn’t realise that the companies who manage employee stock purchases can step in this way, but apparently State Street told GM it will no longer administer the company’s stock purchase plan cause things have gotten so bad.
Reuters: General Motors Corp said on Tuesday it could not restart a program that allows employees to buy the company’s common stock due to restrictions imposed by State Street Bank and Trust Co, the independent overseer of the plans.
GM had planned to reinstate the program which was suspended in September when GM exhausted its authorised shares, but was told by State Street that “it was not appropriate to allow additional investments” by employees in light of GM’s financial straits.
We have no idea, are employees actually still buying stock in this scrap heap? Were not sure how it’s structured, but if they had some kind of scheme to let employees shovel salary into shares, we’ve no doubt that many are still doing it out of inertia, throwing money down the tube each month. This should save them some money.
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