Big Dot! - GM Halts Stock Trading by Top Executives

By Dee-Ann Durbin, AP Auto Writer ^ | June 27, 2005 | Milwaukee_Guy

[Milwaukee_Guy]

General Motors Bars Senior Executives From Buying, Selling Company Stock Indefinitely

DETROIT (AP) -- General Motors Corp. has forbidden senior executives and other employees with access to internal financial information from buying or selling company stock indefinitely, a spokeswoman for the automaker said Monday.

GM spokeswoman Toni Simonetti said a memo was sent to senior executives May 24 barring them and some of their employees from buying or selling stock. Simonetti said she didn't know how many people were affected, but the company has about 400 senior executives.

Simonetti said GM regularly has blackout periods when employees aren't supposed to buy or sell shares, such as before quarterly earnings announcements. But this one is unusual because it's indefinite and was put in place because the company has declined to update its full-year earnings forecast since April.

"What's notable in this one is that it's been mandated right now because of the lack of financial guidance in the public domain," Simonetti said.

excepted, full story at ,

http://biz.yahoo.com/ap/050627/gm_executive_trading.html?.v=2

[CaptSkip]

At some point, it matters not how big a discount you are offered.

You simply don't want the product.

I learned my lesson on USA cars after I purchased BOTH of the last two fleet cars (GM mid-sized) from my employer's fleet division at unbelievable discounts. I had personally driven each from 0 to 65,000 miles. Both had been meticulously serviced...true road miles...and BOTH were P.O.S. by 85,000!

I tried to support "Made in USA" cars for years...no more.

Two Mazdas and a Honda in the driveway now.

Sorry...

[spetznaz]

GM management needs to read your post. On the other hand even if Lutz and Wagoner were forced to read it a hundred times over I am 100% certain the only steps the would take (if they took any in the first place) is just mess things up more. GM may be an even better paragon of 'why companie fail' than even US Steel could ever aspire to.

[Spktyr]

I have to disagree with you on Lutz. Lutz hasn't been in there long enough and hasn't had much responsibility - and Wagoner has systematically shot down at least half of things that Lutz has proposed (revenge for Lutz's deriding of the Aztek.)

Lutz has been behind the renaissance at Cadillac, the wonderful GTO importation, and the Saturn Sky/Pontiac Solstice twins. He's had no fiduciary responsibility at all, he's basically been put in charge of product development (with severely limited powers because Waggie clipped his wings and Lutz is signed to a contract that says he can't leave). Waggie is responsible for all the stupid mistakes and things like the Aztek, the Rendezvous, the continued production of the Impala when the competition is RWD or AWD, killing off the Zeta RWD platform for the US (and thus any hope of a Camaro/Firebird/Caprice replacement) etc. etc.

Basically, Lutz has been trying to fix the product lineup, but the GM old-guard won't let him.

Remember, Waggie is responsible for that abortion known as the Aztek and is the only reason that it hasn't been axed like GM promised to three years ago. The day he goes to jail wil be a great day for all mankind.

[MonroeDNA]

UAW.

[nw_arizona_granny]

Ping

[AlbertWang]

They could probably cut 300 of these dead weight executives and save $120 million in salaries alone.

I would wager that GM could replace all 400 with only 20 winos hired out of the gutter and not fail any faster than it will under the current management. Actually, the company would probably do much better.

[Spktyr]

What about the Union of the Asinine and Worthless?

[infocats]

General Motors Corp. has forbidden senior executives and other employees with access to internal financial information from buying or selling company stock indefinitely, a spokeswoman for the automaker said Monday.

Gee, I thought that's what insider trading was all about!

[mewzilla]

Too many chiefs, not enough Indians.

Too many Indians with too many bennies :)

[wtc911]

The lessons of Enron.

[Mr. Jeeves]

And how difficult would it be for one ballsy venture capitalist or investment banker to figure out how to buy out GM and turn it around?

Kirk Kerkorian is going to try to do just that - he already owns a significant piece of the company. Maybe he can offer the union workers he's about to lay off jobs in some of his Vegas casinos. ;)

[Calpernia]

Anyone remember craftsmanship? Way back when businesses took pride in their work for their identity. Now businesses are hijacked to collect salaries and bonuses and roll out cheap products.

[SierraWasp]

Geeze!!! What happened to all the doom and gloom and Dow fears and stop orders, etc., from last night? Dow's UP!!!

[SierraWasp]

What dip? It's up over 77 points as I type this!!! Surprise, surprise, surprise!!!

[dfwgator]

Yep, the Honda dealer, where we bought all three of our Hondas (Civic, Accord, Odyssey) is still doing very brisk business.

[dfwgator]

I think the Street basically concluded that GM is toast months ago, and it was already incorporated in the stock prices.

[evets]

Here, you can have mine.

[theDentist]

This is why I am not wealthy beyond my dreams....

[RightWhale]

why is GM up $0.69 on this news?

[Space Wrangler]

A buy-out won't cut it....the buyer would still be bound by the ridiculous labor contracts that GM saddled itself with back in the 80's. GM will have to die. After a full-on bankruptcy, and the labor contracts shredded, a dynamic management team can bring GM back into the fold, but no buyout will save it.