Berkshire Hathaway buys ResCap loan portfolio

AP

NEW YORK Residential Capital has completed the sale of a portfolio of mortgage loans to Berkshire Hathaway (BRK).

Warren Buffett's company won the bankruptcy auction for ResCap's loan portfolio with a $1.5 billion bid last year.

ResCap said Tuesday the loan sale had been completed.

ResCap's parent company, Ally Financial, is 74 percent owned by the U.S. government as a result of bailouts.

ResCap has been a drain on Ally's finances because it has struggled to make payments on its debt ever since the U.S. housing market collapsed in 2007.

Berkshire is an Omaha-based conglomerate that includes more than 80 different companies. Besides the insurance, utility, railroad, retail and manufacturing companies Berkshire owns, the company also holds major investments in Coca-Cola, Wells Fargo, IBM and other companies.

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