With GMAC Financial Services (NYSE: GKM) having been run into the ground to the point where it required an emergency $6 billion bailout from the federal government, you'd think the chairman of the company's board of directors would have been toast a long time ago. But he's still there: billions of dollars in irresponsible loans apparently aren't enough to get you fired.Change my be on the way. The bailout makes the federal government the largest shareholder in the company, and according to BusinessWeek, "That means there will be a clean sweep that will likely push out J. Ezra Merkin, along with most of the executives who were appointed to the board by owners General Motors (NYSE: GM) and Cerberus Capital Management, say sources involved with the changeover. Day-to-day management, however, may stay in place."
GMAC's board will be reduced from 12 members to 7 and chairman Merkin is "unlikely" to remain.
Wow. Merkin has presided over a reckless spree of bad loans that culminated in the need for a federal bailout, and, by the way, is being sued by New York University for allegedly concealing Bernard Madoff's fraudulent practices when he funneled NYU money into his investments scheme.
In corporate America, that's apparently only enough to make you unlikely to remain in power. Until that changes, we're probably doomed.
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Reader Comments (Page 1 of 1)
1-02-2009 @ 3:41PM
sal said...
This is the problem with this great country of ours.......We spend a lot of time "benchmarking" best practices in the world but when it comes to politics and finances we have a hard time adopting the " chinese approach to justice"
I can guarantee that none of these miserable parassites will ever take a job (and residence) in China. We would gladly approve another $700.000.000 bail out money, if only some of these bastards would be put in jail or promptly decapitated or hanged high for the rest of this class of thieves and ignorants called leaders to see and fear. When is it going to stop?
....now lets wait for the golden parachute announcement... after all they all deserve it...they have just assured a lot of hard times for the next few years for an entire world while they will get richer in the process.
I am disgusted.
1-03-2009 @ 10:06AM
lisa said...
I just heard about a woman who retired from Ford and was a member of the UAW received a $500 Christmas bonus this year?????
1-03-2009 @ 11:16AM
William Blevans said...
There was NO BONUS given to any autoworker at christmas. Thats flat out LIE. People just love to start some sht
1-03-2009 @ 11:17AM
William Blevans said...
And your congressman wants to raise the Federal gas tax and gave themselves a raise. Now why dont you put your energy into giving them HELL