ResCap Bankruptcy Examiner Eyes Subpoenas, 6-Month Probe
The court-appointed examiner reviewing the bankruptcy of mortgage lender Residential Capital LLC plans to seek authority to issue subpoenas and expects his review to take six months, Reuters reported on Friday. Former Bankruptcy Judge Arthur Gonzalez, the examiner, wants authority to issue subpoenas on anyone possessing "information relevant to the investigation," and will need "a substantial amount of time" to prepare his report, his lawyers said in a court filing. Bankruptcy Judge Martin Glenn on Friday issued an order approving the scope of Gonzalez's probe. The approval does not cover the request for subpoenas. The examiner plans to review all material agreements between ResCap and its parent Ally Financial Inc, and with former majority owner Cerberus Capital Management LP. He also plans to review business decisions by top ResCap officers and its board, as well as the validity of claims by and against ResCap.