GMAC Chairman Steps Down Amid Madoff Suit

Law360, New York (January 12, 2009, 12:00 AM EST) -- The chairman of the struggling financial arm of General Motors Corp. has resigned from its board of directors, as he faces a lawsuit taking him to task for investing $1.8 billion of his clients' money in Bernard L. Madoff's alleged $50 billion Ponzi scheme.

On Friday, J. Ezra Merkin resigned as chairman of GMAC Financial Services LLC, which said it was reconstituting its board in order to meet the requirements for a cash infusion from the U.S. Department of the Treasury's Troubled Asset Relief Program. GMAC...
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