General Motors Corp., Detroit, was blocked by State Street Bank & Trust
from allowing participants in the automakerfs two 401(k) plans to purchase GM
common stock shares because of GM's financial difficulty, said Julie Gibson, GM
spokeswoman.
State Street, administrator and fiduciary for the $11.7 billion salaried
employees 401(k) plan and $8.6 billion GM hourly employees 401(k) plan, refused
to approve registration by GM of shares for sale to participants, Ms. Gibson
said.
She said GM approached State Street before registering the shares.
GM sought to register additional shares of its stock for purchase by its
401(k) participants after the company suspended purchases because no more
registered shares were available, Ms. Gibson said.
gIt was their (State Streetfs) decision it would not be appropriate to
register additional shares,h Ms. Gibson said.
GM informed participants of the decision. She didnft know if any GM employees
objected to the State Street action.
The 401(k) participants owned $1.4 billion in GM stock. A breakout of the
amount of GM stock held by each of the plans wasnft available.
Ms. Gibson declined to provide data; the asset amounts came from GM filings
with the SEC and are as of Dec. 31.
Carolyn Cichon, State Street media representative, said, gState Street acts
as the investment manager for the GM company stock fund. In its role as
investment manager, State Street is required to follow the ERISA framework and
focus exclusively on the best interests of the participants. We continue to
evaluate the situation on an ongoing basis.h
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