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Thursday, 10/25/2012 10:20:52 PM

Thursday, October 25, 2012 10:20:52 PM

Post# of 44
Berkshire Wins Auction for ResCap Loans (10/25/12)

By ANDREW R. JOHNSON
Warren Buffett's Berkshire Hathaway Inc. was the winning bidder in a bankruptcy auction for a portfolio of loans from Residential Capital LLC, the subprime mortgage unit of government-owned Ally Financial Inc.

ResCap's board approved the winning bid of $1.5 billion by Berkshire. The bid beat a consortium of investors, said a person familiar with the auction.

On Wednesday, ResCap said it reached an agreement to sell separate mortgage servicing and origination assets to Ocwen Financial Corp. for $3 billion in another bankruptcy auction.

ResCap filed for Chapter 11 bankruptcy in May as bond payments loomed and mortgage securities lawsuits mounted.

Write to Andrew R. Johnson at andrew.r.johnson@dowjones.com

http://professional.wsj.com/article/SB10001424052970204530504578078933076161940.html?mod=googlenews_wsj&_nocache=1351217898533&user=welcome&mg=id-wsj&mg=reno-wsj

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