And not for anything trivial.
Since the feds allowed the General Motors Acceptance Corporation to become a bank, a kindness worth billions to this automobile lending company and to other combines that were able to shift their character overnight, one would have thought that the authorities would look closely at who runs these shops.
Well, J. Ezra Merkin happens to be the chairman of the board of GMAC. Yes, the same Merkin who has been complicit in the Madoff criminal enterprise and who took his clients, charities of all sorts and families, super-rich families, too be sure (others wouldn't have been worth his precious time) to the cleaners. That is, they are cleaned out, and he was compensated for every dime they lost at the rate of 1 1/2% per annum.
Now, it's true that the papers have been peculiarly inattentive to Merkin's activities at GMAC. They haven't reported his role in the company, even in their dispatches telling the public that GMAC is also lapping off the bailout.
Surely, Henry Paulson knows about Merkin's chairmanship. Merkin has resigned as president of the Fifth Avenue Synagogue (great cantor there, by the way) and as treasurer of Yeshiva University. Why should he not be compelled to resign from a post that has him supping off the public trough?