Buffett's company wins auction for ResCap's loans
NEW YORK Warren Buffett's company won the auction for Residential Capital's loan portfolio with a $1.5 billion bid this week.
That means the conglomerate Berkshire Hathaway (BRK) will acquire the loans as long as a bankruptcy judge approves.
ResCap's board of directors said Thursday that Berkshire had submitted the best bid for its portfolio of 47,000 loans.
Berkshire's winning bid is slightly higher than the $1.442 billion minimum Berkshire promised when it became the lead bidder for ResCap's loan portfolio in June.
ResCap's parent company is Ally Financial, which is 74 percent owned by the U.S. government as a result of bailouts. ResCap has been a drain on Ally's finances for years because it has struggled to make payments on its debt ever since the U.S. housing market collapsed in 2007.
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- That means Buffett paid slightly less than $32,000 each for 47,000 homes. Way to go Warren. Now I want to know the value of all those homes to which he owns the mortgages. Furthermore, if they were going to agree to sell them to him for this price, what do you want to bet that most of the homeowners would have gladly paid TWICE that amount to keep their homes out of foreclosure but that the GREEDY banks refused. ITS A DISGRACE FOR THE VICTIMS! But Buffett never has shown any compassion for the people he takes to the WOODSHED!
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