Sounds like a preemptive strike by freezing the 401(k)s. Wonder if that was the bank’s suggestion or some financial advisor or attorney connected to the bank. Wonder if employees quit if they can still get their 401(k) out?
Most of us do not believe 401(k)s overall really still exist and many economic advisors strongly say to cash out your 401(k)s even if you take a loss and put the funds in physical precious metals or some sustainable tangible investment.
Freezing the 401(k) funds sounds more than a little suspicious.
This is the email that David Little, Chairman and CEO of Houston-based DXP Enterprises sent to his employees to explain why, “due to bank obligations and to continue a positive cash flow profile” the company has to freeze 401(k), why it is cutting pay in some cases as much as 60% and why many employees are about to lose their jobs in the middle of what is an “oil and gas depression.” It is a disturbing read.
As you well know, these are very challenging times for everyone in the oil & gas industry and other industrial markets. We are working hard to navigate both the challenges in oil & gas and an industrial recession plus what appears to be continuing softening. Normally, when upstream oil and gas is down the rest of the industrial market is booming, not this time!
This past Friday, we announced…
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