GM North America President Troy Clarke and soon to be departing Vice Chairman Bob Lutz plus four other execs have sold more than 200,000 shares of GM stock.
Spokeswoman Julie Gibson says the sales don’t show a lack of faith in the company. As GM comes closer to the June 1st deadline, GM has publicly disclosed to its shareholders that they run the risk of losing their investments if GM does end up filing for bankruptcy.
Bob Lutz sold all of his 81,360 shares for a total of $130,989.60, while Troy Clarke sold his 21,380 shares for $31,001.
Full Story: Detroit Free Press
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Comments (5)
Wow, Troy Clarke dumped all his shares for $31,001... guess he needed some lunch money!
Seriously though, what are these guys smoking that the execs would dump all their shares and then claim that it doesn't show a lack of faith in the company? Do they really think people are that stupid that they can tell us this stuff and we believe them? Like wow, corporate America really needs to give its head a good shake!
And these are the guys asking for my tax dollars...
Posted by String | May 12, 2009 8:13 AM
Posted on May 12, 2009 08:13
Actually people are stupid. All they have to do is say it and most people will believe it. Thats why advertising works so well on us. If we don't hear a better alternative, we eat it up. Better yet, by next month you will forget about it anyway. Politicians love this about us.
Posted by subpra | May 12, 2009 9:40 AM
Posted on May 12, 2009 09:40
Not as many shares as I would have expected.
Notice they sold, THEN it got announced. Expect the price to plummet as others sell. Then expect these same execs to rebuy at a fraction of the price as (just before) GM emerges from bankruptcy.
Aren't there laws to protect against this sort of behavior? Insider trading, etc...?
Posted by kw | May 12, 2009 10:41 AM
Posted on May 12, 2009 10:41
@KW
No, insider trader means that you're buying and selling based on information only known to those in the company. Everyone knows that GM is going down the drain, so it's not like it's a secret. If they'd sold off all of their stocks BEFORE all of the hearings 6 months ago where they were begging for money, then it would've been insider trading.
Posted by Totenglocke | May 12, 2009 11:06 AM
Posted on May 12, 2009 11:06
I would have thought this was illegal. Higher level management is supposed to announce their intention to sell stock BEFORE they sell it. There are laws against just dumping it without notice.
Posted by gm0n3y | May 12, 2009 12:48 PM
Posted on May 12, 2009 12:48