Company Stock in 401(k) Plans: Trouble on Wall Street

Employees at the five largest Wall Street firms often have a portion of their 401(k) accounts invested in the stock of their employer, and in 2011 those holdings created losses of over $2 billion in those accounts, according to analysis by Bloomberg. More than half of that loss came from Bank of America, where 13% of 401(k) assets were in company stock. The portion of 401(k) assets in company stock at the big five firms ranged from 2% at Goldman Sachs to 24% at Morgan Stanley.