Pursuits
Buffett’s Berkshire Wins ResCap Auction With $1.5 Billion Offer
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Berkshire Hathaway Inc. won an auction for a portfolio of Residential Capital LLC’s loans with a $1.5 billion bid, adding to Warren Buffett’s bet on a housing market recovery.
The competing bidder was a group that included a unit of Credit Suisse Group AG, according to two people familiar with the matter, who declined to be identified because they weren’t authorized to speak publicly. ResCap auctioned its mortgage-servicing business to Ocwen Financial Corp. on Oct. 24 for $3 billion. Ocwen beat Nationstar Mortgage Holdings Inc. in an auction that would create at least the fifth-largest U.S. mortgage servicer.