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The GMAC/ResCap Bankruptcy- The Investors Will Profit, The American Taxpayer Will Suffer

By September 23, 20122 Comments

Next Thursday I will travel to New York City to see another chapter in the misery-filled saga that is the destruction of the American Middle Class play out in federal bankruptcy court.
GMAC/Rescap filed bankruptcy and they’re carving up the pieces….and serving up the choicest slices for the insider investors and Wall Street titans that run the game.
Of course if you’re an ordinary Amerikan (you know one of the ones that continues to bail out Wall Street and the banks), don’t count on getting any real support…and don’t for a minute think there’s any bailout heading your way.   GMAC continues to roll right ahead throwing Americans into the street and failing to provide appropriate modifications:

Why has the administration’s flagship foreclosure prevention program been so ineffective in helping struggling homeowners get loan modifications and stay in their homes? One reason: The government’s supervision of the program has apparently ranged from nonexistent to weak.
Documents obtained by ProPublica””government audit reports of GMAC, the country’s fifth-largest mortgage servicer””provide the first detailed look at the program’s oversight. They show that the company operated with almost no oversight for the program’s first eight months. When auditors did finally conduct a major review more than a year into the program, they found that GMAC had seriously mishandled many loan modifications””miscalculating homeowner income in more than 80 percent of audited cases, for example. Yet, GMAC suffered no penalty. GMAC itself said it hasn’t reversed a single foreclosure as a result of a government audit.
And just read details of the bankruptcy:
One of Ally’s biggest creditors at that time was Mr. Buffett’s Berkshire Hathaway, which held more than $500 million of ResCap’s unsecured bonds and $900 million in ResCap’s junior secured bonds. Berkshire has since sold the unsecured bonds but has also joined the fray. It announced in June that it would bid for the mortgage servicer, and offer $1.45 billion for the legacy loan portfolio. The investment firm Lone Star Funds has also stated its interest in buying one or both.
Ally has now bowed out and Berkshire has replaced it as the stalking bidder for the loan portfolio. This fall, a bankruptcy court will hold an open auction for both businesses. We don’t know who will buy these businesses, but it won’t be Ally, which has left the scene after losing billions.
When asked for comment on why it was no longer bidding, an Ally spokesman expressed the intention for Ally to focus on its core businesses where Ally has a ” leading position and competitive strengths, and that includes the auto finance and direct banking franchises.”
Ally’s initial gambit as a stalking horse bid has succeeded in bringing bidders to the table and maximizing the value of ResCap. But it’s hard not to think that if Ally were not a ward of the government, this might have turned out differently. Having come so far and invested more than $10 billion, Ally might want to bid for those assets, using its prior ownership to gain an advantage. After all, now there appears the potential to profit.
Americans have no idea just how bad a deal the American Home Mortgage Servicing bankruptcy was for them….and the GMAC situation may get real bad….
I have two American Home Mortgage Servicing cases on appeal right now…stay tuned to those…and the gmac bankuptcy….remember, CLAIMS BAR DATE IS FAST APPROACHING!


  • speakout says:

    My question is this, if anyone could or would answer.
    I read in the beginning of 2009 (just after the famous TARP “bailout”, that ALL of the total mortgages in the whole country (including default and current) was $9.75 trillion. If the banksters got bailed out (per the audit of the Fed this past year)to the tune of $22 Trillion, that would equate to 2 1/2 times the total of all mortgages in the whole country! SO, why isn’t everyones mortgage “forgiven”? It’s all fiat funny money anyway. The banks never put up anything for the loans. But they got $22 trillion! What did they do with that money?
    Could this be the laundered Wanta funds being brought back on the books, so Bush/Cheney/Clinton could hide their rampage of stealing the wealth of America. Wanta funds were $27.5 Trillion of the peoples money in trust from Reagan and Bush only wanted to give back $4.5T. Congress knows about it. ALL of the money that has been created in the last 100 years through this fiat system, belongs to the PEOPLE. After 1933 they took our gold and are giving us worthless paper in exchange for our labor and assets. WE created the value. WE are the wealth of America. The banks did not. This is the same scenario as back in the 1970’s during the farmer foreclosures. They found the Federal Reserve had $800 Trillion it was hiding of OUR money. The world is wealthy beyond belief. It’s in the quintillions! So why are these crooks crying they are BK. I’ll tell you. They are shifting the shell, so no one will know the fraud they perpetrated on us. This is THE crime of the history of the world and the courts are allowing the PEOPLE to lose their homes! Shame on them! The foreclosure courts should be shut down until the crooks are brought to justice. It is NOT the peoples fault the banksters gambled our assets away and crashed the economy after they had everyone run up debts, just like in 1929. This crash was engineered to steal the wealth of America again. The truth of the matter is, money doesn’t disappear, it just changes hands. So who is holding the money now? Where is OUR $800 Trillion+?

  • paul corrado says:

    I need help with my claim form and the responsce from the bankruptsy court. I have a law suit filed against rescap. Gmac. Can tou help. 8189225507

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