Federal Judge Rejects Out of Control GMAC Executive Bonus Packages….Where is Foreclosure Relief? (The GMAC Bankruptcy Borrower’s Committee)in HPN Blog
No one really knows just how many billions of our taxpayer dollars GMAC received.
What is clear is that even after receiving billions from Amerikan taxpayers, GMAC continues to plow right ahead throwing American families into the street. Meanwhile, GMAC filed bankruptcy in an effort to flush out obligations to creditors. But what about relief for the families that bailed them out? Right, once again we get nothing…..
But the executives that drove the company into the ground are demanding millions of dollars in compensation for…..taking billions of taxpayer dollars, continuing to throw Americans into the street and then trying to walk away from the wreckage. Fortunately, a federal judge has rejected this slap in the face to the American taxpayer and families.
(Reuters) – A federal bankruptcy judge on Tuesday rejected Residential Capital LLC’s proposal to pay as much as $7 million of bonuses to 17 senior executives, saying the payout was primarily a reward for staying in their jobs.
U.S. Bankruptcy Judge Martin Glenn said the “key employee incentive plan” proposed by the mortgage unit of Ally Financial Inc did not link the $4.1 million to $7 million payout closely enough to “challenging financial and operational goals”.
The Manhattan judge also found that 63 percent of the payout could vest upon the sale of major assets, which ResCap believes are worth nearly $4 billion.
ResCap’s plan “is primarily retentive in nature,” and “appears to attempt an end-run” around federal bankruptcy laws, Glenn concluded.
It truly is an absurd offense to the American people and especially those who are suffering the abuse of foreclosure litigation at the hands of GMAC to be suffering blunt and abusive litigation from a company that they helped to “save” Think about it….the American homeowner’s taxpayer dollars are being used to fund the litigation against them that will have them thrown into the streets.
Ensuring some semblance of justice and fairness, making sure that everyday Americans have some voice in this bankruptcy process is a key objective behind the formation of the GMAC Bankruptcy Borrower’s Committee….making sure that some semblance of fairness is permitted to intrude into the massive GMAC federal bankruptcy court process.
This latest ruling is a very positive sign….it suggests that the American people have a good judge who is responsive to the larger issues….and in this nation and in these very difficult times, which will only get much worse, we really need our judges more than ever.
It’s critical that all Americans, and especially judges and policy makers to understand why a GMAC Bankruptcy borrower’s committee is important. To that end, the petition that was filed is here.
Original linkOriginal author: Matthew D. Weidner, Esq.
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