![]()
- Dubai Fallout Is a Correction, Not Another Crisis: El-Erian
- Dubai's Debt Woes Signal New Era for Creditors
- Banks With The Biggest Exposure to The UAE
- Slideshow: The World's Biggest Debtor Nations
- US Dollar Rises Against Most Currencies—Except Yen
- Shoppers Hit Black Friday Sales, Budgets Pared
- Slideshow: Fantasy Christmas Gifts 2009
- EA Sports Hopes to Pump Up Sales With Pop-Ups
- Cheap Robotic Hamsters Are Holiday's Unlikely Craze
- Obama's Emission Reduction Pledge Paints Future for Autos
- Is Super Bowl Halftime Act Too Old?
- Surprising Options Trades in TiVo Shares
- EA Sports Hopes to Pump Up Sales Through Pop-Up Locations
- 8 Retailers that Gain During the Holidays
- Farrell: What's Different On This Black Friday
- 10 Dividend Picks For Your Portfolio: Chief Investors
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
MOST SHARED
- Dubai Fallout Is a Correction, Not Another Crisis: El-Erian
- 8 Retailers that Gain During the Holidays
- Finding the Holiday's Best Buys
- Banks Play Down Dubai Exposure, Investors Still Wary
- Charts: Dollar Could Fall to 80 Yen
- ING Prices Share Issue at Hefty Discount
- Shoppers Hit Black Friday Sales, Budgets Pared
Ezra Merkin, the manager of a major Bernard Madoff "feeder fund," resigned effective Friday from his post as chairman of GMAC Financial Services, the financing arm of General Motors [GM
Loading...
()
].
Within and without GMAC, pressure had grown on Merkin to step down since he was connected to the Bernard Madoff scandal, CNBC has learned. Merkin ran one of the funds that handed money over to Madoff, who is alleged to have run a $50 billion ponzi scheme that has ruined many investors.
At least one entity that is believed to have lost millions as a result of the Madoff scandal, New York University, has said it was unaware that Merkin was investing its money with Madoff.
GMAC put out a press release pointing out that Merkin's resignation is in accordance with an order from the U.S. Federal Reserve System's Board of Govenors granting GMAC's application to become a bank holding company. The order lets GMAC participate in the U.S. Department of the Treasury's Troubled Asset Relief Program.
"I am pleased that GMAC has successfully completed its conversion to a bank holding company and look forward to GMAC's accomplishing its goals," Merkin said.
Lenard Tessler, managing director and co-head of private equity at Cerberus Capital Management will replace Merkin during transition to the new board, which must be reconstituted no later than March 24 per Fed order.
The vacant board seat will be filled by Jeffrey L. Lomasky, chief financial officer of Cerberus.
GMAC's new seven-member board will consist of the GMAC chief executive officer, one representative from FIM Holdings, two directors appointed by a trust to be formed by U.S. Department of the Treasury, and three independent directors elected by the aforementioned directors.
- Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
- Social enterprises are becoming a new asset class for the ethically-minded.
- With Americans cutting back on spending, holiday tipping will take another hit this year.
- More shoppers than ever plan to comparison-shop this season. Who will benefit?
- It may be the most unusual guide to business you'll read.
- Some of the nation's top bartenders offer suggestions on what to serve at holiday celebrations this year.













