OPPORTUNITY KNOCKS: Warren Buffett’s Berkshire Hathaway has offered to buy the loan portfolio and mortgage division of Residential Capital, which recently filed for bankruptcy protection.
BETTER BID: Berkshire says its bids are superior to competing ones from Fortress Investment Group and Ally Financial. It says its $2.4 billion bid for the mortgage unit is better than Fortress’ because it has a lower breakup fee and no expense reimbursement charge. Berkshire says its $1.45 billion bid for the loan portfolio is better than Ally’s $1.4 billion offer.
EXPERIENCED HAND: The conglomerate based in Omaha, Neb., already holds roughly $2.8 billion in mortgage-backed securities purchased for about $2.5 billion for its investment portfolio. Berkshire also owns manufactured home builder Clayton Homes, which runs its own lending unit, so it has some experience with mortgages.
