More on ResCap Ally GMAC Bankruptcy

There has been an inordinate amount of interest in this bankruptcy.  Here are two articles by Julia Kim and Robert Siegel on Mortgage Crisis Watch:

Residential Capital Files Bankruptcy Part 1 of 2

ResCap and Ally Will Not Challenge Repurchase Claims Part 2 of 2

And here’s another from Financial Times:

US Judge Orders ResCap Probe, excerpt below:

Treasury officials had signalled approval, but creditors, including Warren Buffett’s Berkshire Hathaway, had urged the judge to appoint an independent examiner to probe pre-bankruptcy dealings between Ally and ResCap, whose net effect, Berkshire said, “was to transfer a substantial share of ResCap’s operating assets to [Ally]”.

Judge Martin Glenn said at a hearing in New York on Monday that “given the facts and circumstances of this case, the court concludes that appointment of an examiner is required and appropriate”.

Independent examiners are typically bankruptcy lawyers, who investigate pre-bankruptcy transactions. The examination could slow the bankruptcy process, and delay auctions of ResCap assets, which the company had hoped could occur within 90 days.

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