BBT pension plan purchased 2.45 million shares of BBT stock earlier this month.
The purchase price was $21.51 a share. BBT raised $52.9 million from this sale.
These shares are dilutive to the number of shares currently outstanding.
The pension fund is forbidden to sell on open market for a six month period.
as a matter of fact there was a very recent supreme court case on this very topic regarding the failure of the 401 andminstrator's failure to follow a 401k participant's instructions to change investments.
so what does that have to do with 401k plans? If I am not mistaken lesgitation authorizing 401k plans did not come about until the 80s.
As to a retirement plan it is usually managed by an outside management (don't think that it has to be, but it normally is). There are limits on how much stock of a single company that can be held as a % within these plans though.
I recall when GM spun out EDS and wanted to stuff their pensiom plan with EDS stock - they had to get an exception to do so and was required to reduce that level over like 5 years. I doubt BB&T's pension plan is anwhere near those levels.
getting old timer's disease are we?
And you can't read, I never said they could make decisions inre a pension plan.
A 401k is not a pension plan as I stated (but a retirement savings plan)and the employee has complete control of investment decisions within the options offered within the 401k plan. Maybe you ougt to stop dozing off in the middle of a msg and focus.
You are simply wrong. NO employee of General Motors makes the decision to buy an individual stock for the retirement fund. You think that you know everything about everything. Suggest you call BB&T and tell them how to handle the 2.4 million shares bought for the pension fund. If I worked for them I wouldn't take your call but do think they will talk to almost anyone.
BTW - if the adminstrator's of the 401k make changes in the composition of an inverstors investments without the 401k owner's permission they open themselves up to all kinds of liability by the owner of the asset. You example about GE an T is BS.
Not to get personal but you are a dumb ass.
Clearly, you are the one with the problem. I have managed 401k money for years and as I indicated even set up a plan for a private company. Have you read the ERISA regulations? I have.
I suspect I have forgotten more about the regulations regarding 401ks than you ever knew. I managed to retire at an early age due to my success in managing such money. How about you Normy?
What is absolutely clear about a 401k plan is the asses are owned by the employee and not the company. The employee makes investment decisions not the company. BB&T cannot arbitrarily decide to stuff it with BB&T stock as you are trying to imply. Whether BB&T stock is an investment choice I do not know, but I will ask an employee to post and inform us. It is irrelevant though as the employ decides not the company as to what is in the plan.
Any employee who has more than about 5% of their 401k money in an employer's stock is an idiot. Ask Enron employees if you doubt this.
If you don't understand this I suggest you educate yourself. I am sure if you are diligent you can find the DOL's 401k regulations on the internet.