OUTRAGEOUS! GMAC Objects to Appointment of Borrower’s Bankruptcy Committee – Cites The 49 State AG Sellout!
Author: Matthew D. Weidner, Esq.
Next week I will travel to federal bankruptcy court where Robert Brown, supported by my friend Paula Rush are petitioning the court to appoint a borrower’s committee in the GMAC/REesidential Capital Bankruptcy. Just last Friday, at the very last minute, GMAC objected to the appointment of the Committee…Objection attached below.
I want you to read the objection carefully, but the thing that just has me hitting the roof right now is how much their objection relies upon the 49 State Attorney General Settlement as part of the argument against sitting a committee to speak for the rights of consumers. I’ve railed long and hard against the 49 State Sellout. It was and is a slap in the face to consumers, a gift to the banks, no real penalty for astonishing wrongdoing…..and now GMAC asserts that, because they’ve made their penance, they need not be responsive to consumers in the context of the bankruptcy.
THIS IS OF COURSE OUTRAGEOUS! The 49 State AG was a settlement of paltry proportions to the insurance fraud that was committed by the banks. The terms were not even a good stern talking to, much less a slap on the wrist. Really, read the Settlement Terms….note that what GMAC is agreeing to, in adopting the terms, is to FOLLOW EXISTING LAWS! From the Term Sheet: