Residential Capital LLC ( fka RDCC)

[johnnyk2394]

In Win for Buffett, Judge Approves Examiner in ResCap Bankruptcy

"Morrison & Foerster LLP's Gary S. Lee, a ResCap lawyer, said an investigation already being conducted by ResCap's official committee of unsecured creditors should be sufficient and that an examiner would amount to "two identical investigations into exactly the same issues."

But Judge Glenn agreed with a Berkshire lawyer and the Justice Department's bankruptcy watchdog that the Bankruptcy Code is very clear that an examiner should almost always be appointed when requested.

"I don't think I have unbounded discretion to turn down an examiner motion," Judge Glenn said.

Mr. Lee pointed out that some of the investors represented by ResCap's very own creditors committee are the ones who bought some of the unsecured bonds Berkshire sold in the days after it asked for the examiner."

http://online.wsj.com/article/SB10001424052702303703004577474802295412424.html