diff --git a/org.eclipse.jdt.core.tests.compiler/src/org/eclipse/jdt/core/tests/compiler/regression/ResourceLeakTests.java b/org.eclipse.jdt.core.tests.compiler/src/org/eclipse/jdt/core/tests/compiler/regression/ResourceLeakTests.java
index 9052e4e..7fa03cb 100644
--- a/org.eclipse.jdt.core.tests.compiler/src/org/eclipse/jdt/core/tests/compiler/regression/ResourceLeakTests.java
+++ b/org.eclipse.jdt.core.tests.compiler/src/org/eclipse/jdt/core/tests/compiler/regression/ResourceLeakTests.java
@@ -26,7 +26,7 @@ import org.eclipse.jdt.internal.compiler.impl.CompilerOptions;
 public class ResourceLeakTests extends AbstractRegressionTest {
 
 static {
-//	TESTS_NAMES = new String[] { "test061l"};
+	TESTS_NAMES = new String[] { "testBug368709b"};
 //	TESTS_NUMBERS = new int[] { 50 };
 //	TESTS_RANGE = new int[] { 11, -1 };
 }
@@ -3085,5 +3085,88 @@ public void test063e() {
 		options,
 		null);
 }
-
+// Bug 368709 - Endless loop in FakedTrackingVariable.markPassedToOutside
+// original test case from jgit
+public void testBug368709a() {
+	if (this.complianceLevel < ClassFileConstants.JDK1_5) return;
+	Map options = getCompilerOptions();
+	options.put(CompilerOptions.OPTION_ReportUnclosedCloseable, CompilerOptions.ERROR);
+	options.put(CompilerOptions.OPTION_ReportPotentiallyUnclosedCloseable, CompilerOptions.ERROR);
+	this.runConformTest(
+		new String[] {
+			"X.java",
+			"import java.io.*;\n" +
+			"import java.util.zip.*;\n" +
+			"public class X {\n" +
+			"  Object db, pack;\n" + // mock
+			"  int objectOffset, headerLength, type, size;\n" +
+			"  public ObjectStream openStream() throws MissingObjectException, IOException {\n" + 
+			"    WindowCursor wc = new WindowCursor(db);\n" + 
+			"    InputStream in;\n" + 
+			"    try\n" + 
+			"      {\n" + 
+			"        in = new PackInputStream(pack, (objectOffset + headerLength), wc);\n" + 
+			"      }\n" + 
+			"    catch (IOException packGone)\n" + 
+			"      {\n" + 
+			"        return wc.open(getObjectId(), type).openStream();\n" + 
+			"      }\n" + 
+			"    in = new BufferedInputStream(new InflaterInputStream(in, wc.inflater(), 8192), 8192);\n" + 
+			"    return new ObjectStream.Filter(type, size, in);\n" + 
+			"  }\n" +
+			"  String getObjectId() { return \"\"; }\n" + // mock
+			"}\n" +
+			// mock:
+			"class WindowCursor {\n" +
+			"    WindowCursor(Object db) {}\n" +
+			"    ObjectStream open(String id, int type) { return null; }\n" +
+			"    Inflater inflater() { return null; }\n" +
+			"}\n" +
+			"class MissingObjectException extends Exception { MissingObjectException() { super();} }\n" +
+			"class PackInputStream extends InputStream {\n" +
+			"    PackInputStream(Object pack, int offset, WindowCursor wc) {}\n" +
+			"}\n" +
+			"class ObjectStream extends InputStream {\n" +
+			"    static class Filter extends ObjectStream {\n" +
+			"        Filter(int type, int size, InputStream in) { }\n" +
+			"    }\n" +
+			"    ObjectStream openStream() { return this; }\n" +
+			"}\n"
+		},
+		"",
+		null,
+		true,
+		null,
+		options,
+		null);
+}
+//Bug 368709 - Endless loop in FakedTrackingVariable.markPassedToOutside
+//original test case from jgit
+public void testBug368709b() {
+	if (this.complianceLevel < ClassFileConstants.JDK1_5) return;
+	Map options = getCompilerOptions();
+	options.put(CompilerOptions.OPTION_ReportUnclosedCloseable, CompilerOptions.ERROR);
+	options.put(CompilerOptions.OPTION_ReportPotentiallyUnclosedCloseable, CompilerOptions.ERROR);
+	this.runConformTest(
+		new String[] {
+			"X.java",
+			"import java.io.*;\n" +
+			"import java.util.zip.*;\n" +
+			"public class X {\n" +
+			"  void doit() throws IOException {\n" + 
+			"    InputStream in = new FileInputStream(\"somefile\");\n" + 
+			"    in = new BufferedInputStream(new InflaterInputStream(in, inflater(), 8192), 8192);\n" + 
+			"    process(in);\n" +
+			"  }\n" +
+			"  Inflater inflater() { return null; }\n" +
+			"  void process(InputStream is) { }\n" +
+			"}\n"
+		},
+		"",
+		null,
+		true,
+		null,
+		options,
+		null);
+}
 }
diff --git a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/FakedTrackingVariable.java b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/FakedTrackingVariable.java
index 46ac85d..7101ef7 100644
--- a/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/FakedTrackingVariable.java
+++ b/org.eclipse.jdt.core/compiler/org/eclipse/jdt/internal/compiler/ast/FakedTrackingVariable.java
@@ -209,8 +209,12 @@ public class FakedTrackingVariable extends LocalDeclaration {
 				// find the wrapped resource represented by its tracking var:
 				FakedTrackingVariable innerTracker = findCloseTracker(scope, flowInfo, allocation.arguments[0]);
 				if (innerTracker != null) {
-					if (innerTracker == allocation.closeTracker)
-						return; // self wrap (res = new Res(res)) -> neither change (here) nor remove (below)
+					FakedTrackingVariable currentInner = innerTracker;
+					while (currentInner != null) {
+						if (currentInner == allocation.closeTracker)
+							return; // self wrap (res = new Res(res)) -> neither change (here) nor remove (below)
+						currentInner = currentInner.innerTracker;
+					}
 					int newStatus = FlowInfo.NULL;
 					if (allocation.closeTracker == null) {
 						allocation.closeTracker = new FakedTrackingVariable(scope, allocation); // no local available, closeable is unassigned