GMAC Financial Services can ill afford to be distracted by the Bernard Madoff scandal now that it touches its chairman -- J. Ezra Merkin.
The timing couldn't be worse, as the financing arm of General Motors... is finding it impossible to drum up investor interest in its $38 billion bond swap and is rapidly running out of cash. Merkin must step down to avoid the inevitable conflicts of prioritizing his time when GMAC needs everyone solely focused on its survival...
For Merkin to "vigorously" defend himself and his fund against the lawsuits he now faces personally and professionally in the form of Ascot, he clearly cannot continue in his current position as chairman of the struggling GMAC. It is not fair to him, his investors, or to GM and GMAC as the corporations struggle to survive.
Gavin Magor opines the obvious on TheStreet.com, "GMAC's Merkin Must Go":