May 13, 2009

General Motors Senior Executives Sold (DUMPED) ALL Of The Stock They Directly Own In The Auto Maker!

How can GM or our government expect us to have confidence when the Executives don't EVEN have confidence in the FUTURE of their OWN company? These TOP 7 executives ABANDONED SHIP and deliberately caused the shares to PLUNGED for selfish reasons! They obviously didn't give a damn about the other shareholders left holding the bag. This is precisely the same thing the Sub-prime lender executives did before their company's TANKED!

Why the heck has the Securities and Exchange Commission (SEC) NOT RESPONDED after these transactions were EXECUTED? I want to know WHY the SEC conveniently picks and choses who they investigate and prosecute? This is an obvious case of INSIDER TRADING by the executives of GM! To futher make my point, I want to know why Martha Stewart was put through hell for selling a measely 3,928 share of her ImClone stock in late 2001. The stock price did fall 18% the day after her sale. However, the 18% price drop was NOT based ONLY on her stocks sold! Think about it, Martha Stewart's SEC story is chump change COMPARED to the 100s of thousands of shares that each GM executive SOLD causing the stock price to fall 20% the SAME DAY! Martha Stewart was investigated, prosecuted and made to serve a 5-month prison term. I want to see GM executives and the sub-prime lender executives RECEIVE THE SAME TREATMENT for their EGREGIOUS BEHAVIOR! Enough with the DOUBLE-STANDARDS already!

The GM board of directors should have placed a FREEZE on exercising and selling stock options until the company found its footing!!! The board of directors could have granted the executives new stock options BASED on performance (company profitability) after the bankruptcy was completed. This behavior is OBSCENE!

Our government has already made sure we LOST $7 BILLION with the Chrysler LLC bankruptcy. Now I have NO DOUBT our government is going to allow us to lose $10s of BILLIONS more with the GM bankruptcy filing!!! Thanks President Obama for robbing the U.S. taxpayer to give to the UAW and Auto executives! Aren't they the very same people who funded your Presidential campaign? Thanks for NOTHING! You will REAP precisely what you have sown!


Wall Street Journal
Officials at GM Sell Their Shares
written by YOGITA PATEL
Wednesday May 13, 2009

Seven General Motors officials DUMPED ALL of the stock they directly own in the auto maker as it faces scenarios that would either dilute or wipe out common shareholders.

On Monday, the same day Chief Executive Fritz Henderson said the company still could avoid seeking bankruptcy protection, six insiders, but not Mr. Henderson, disclosed selling an aggregate 204,711 shares at prices from $1.45 to $1.61 a share, or $323,657 in total.

In 4 p.m. New York Stock Exchange composite trading Tuesday, GM's shares fell 20%, or 29 cents, to $1.15, its lowest close in 76 years, on April 27, 1933.

Vice Chairman Robert A. Lutz, who moved into an advisory role last month and will retire by the end of the year, had the largest transaction, selling 81,360 shares for $130,990.

The recent sales followed a disclosure last month that an independent fiduciary, citing the possibility of a GM bankruptcy, sold all of the GM shares in two employee-benefit plans. Also last month, Maureen Kempston Darkes, the president of GM Latin America, Africa and Middle East, disposed of 18,471 shares for $33,433.

"These particular executives made the decision to sell their shares in advance of what we know is going to be happening over the next few weeks," GM spokeswoman Julie Gibson said.

GM is facing a June 1 restructuring deadline from the government and could file for Chapter 11 bankruptcy protection if it is unable to complete a debt-for-equity exchange for $27 billion in unsecured bonds.

Stephen J. Lubben, a bankruptcy-law professor at Seton Hall University School of Law in Newark, N.J., said bankruptcy is the likeliest outcome for GM and would render the shares practically WORTHLESS. Even if the exchange offer were to succeed, investors would be left with shares that won't be worth much, he said.

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