{"id":110266,"date":"2009-12-26T13:28:00","date_gmt":"2009-12-26T18:28:00","guid":{"rendered":"tag:blogger.com,1999:blog-3087194156628161158.post-3449232945086684079"},"modified":"2009-12-26T13:30:35","modified_gmt":"2009-12-26T18:30:35","slug":"times-online-buffett-poised-to-pick-up-gm%e2%80%99s-mortgage-business","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/110266","title":{"rendered":"TIMES ONLINE: Buffett poised to pick up GM\u2019s mortgage business"},"content":{"rendered":"<p><!-- AddThis Button BEGIN -->December 26, 2009<\/p>\n<p><span class=\"byline\">Christine Seib in New York <\/span><\/p>\n<p> Warren Buffett is understood to be in talks to buy Residential Capital, the  troubled mortgage business owned by GMAC, General Motor\u2019s finance division. <\/p>\n<p> Berkshire Hathaway, the investor\u2019s company is, along with Appaloosa Management  and Avenue Capital, the hedge funds, a big holder of Res Cap\u2019s debt. <\/p>\n<p> Res Cap was America\u2019s fifth-largest mortgage origination and servicing  company, but many of its loans were sold on interest-only terms to low  income buyers, which meant that it was hit badly by the housing market crash. <\/p>\n<p> Mr Buffett could be interested in Res Cap\u2019s servicing portfolio, the part of  the business that collects mortgage payments, levies late payment fees and  handles foreclosures. <\/p>\n<p> <!--#include file=\"m63-article-related-attachements.html\"-->  <!-- BEGIN: Module - M63 - Article Related Attachements --> <script type=\"text\/javascript\" src=\"http:\/\/business.timesonline.co.uk\/tol\/js\/picture-gallery.js\"><\/script> <script type=\"text\/javascript\"> function slideshowPopUp(url) { pictureGalleryPopupPic(url); return false; } <\/script> <!-- BEGIN: Comment Teaser Module --> <\/p>\n<div class=\"float-left related-attachements-container\">\n<div class=\"related-attachements-side padding-top-7 padding-bottom-10 padding-right-7\"> <\/div>\n<p><!-- END: Comment Teaser Module -->   <!-- BEGIN: POLL --><!-- BEGIN: Module - M63 - Article Related Package -->  <!--This block will execute if an article of type Poll is attached--><!-- END: Module - M63 - Article Related Package -->  <!-- END : POLL --><\/p>\n<form name=\"relatedLinksform\" action=\"http:\/\/feedproxy.google.com\/~r\/EverythingWarrenBuffett\/~3\/ELVTfD58eLE\/times-online-buffett-poised-to-pick-up.html\" method=\"post\"> <\/form>\n<p>  <!-- BEGIN: DEBATE--> <!-- END: DEBATE-->   <\/div>\n<p> <!-- END: Module - M63 - Article Related Attachements --> <\/p>\n<p> This month, Berkadia Commercial Mortgage, Berkshire Hathaway\u2019s part-owned  subsidiary, bought a commercial mortgage servicing business from Capmark  Financial Group for $468 million (\u00a3293 million). <\/p>\n<p> A GMAC spokesman declined to comment on the future of Res Cap. <\/p>\n<p> Appaloosa made headlines this week when it emerged that the fund manager had  made a $7 billion profit this year by betting on the recovery of the US  economy, putting David Tepper, its founder, in line for a $2.5 billion  payday. <\/p>\n<p> Mr Tepper, a former Goldman Sachs bond trader, bought bank shares when they  were cheap in February and March, gambling that the financial sector would  recover from the credit crisis. More recently he has bought into commercial  mortgage-backed securities, despite fears elsewhere that the sector is going  to make further losses next year. <\/p>\n<p> Michael Carpenter, GMAC\u2019s new chief executive, said in an interview last month  that his top priority was deciding the future of Res Cap, which has lost  $9.2 billion over the past eight quarters. Res Cap\u2019s losses were one of the  main drivers behind GMAC\u2019s $12.5 billion government bailout. <\/p>\n<p> Mr Carpenter told <i>American Banker<\/i>, the newspaper, that he was looking  at \u201cevery conceivable alternative\u201d for Res Cap, including bankruptcy. \u201cWhat  we want to do, to the best we\u2019re able to, is draw a box around [Res Cap] and  say that\u2019s it contained,\u201d he said. <\/p>\n<p> Meanwhile, Berkshire Hathaway has sparked fresh excitement over a successor  for Mr Buffett by announcing Stephen Burke, Comcast\u2019s chief operating  officer, as a new director. Berkshire\u2019s board has been criticised in the  past for being made of up too many elderly insiders \u2014 half of the board\u2019s  members are older than 70 and four are older than 80. <\/p>\n<p> Mr Burke, 51, has a long family connection to Mr Buffett. His father, Daniel,  was one of the founders of Capital Cities\/ABC, of which Berkshire was the  biggest shareholder.<\/p>\n<p><a name=\"comments\"><span style=\"font-weight: bold;\">Share Investor Links<\/span><br \/><\/a><\/p>\n<p><a href=\"http:\/\/www.shareinvestorblog.com\/\">Share Investor Blog<\/a> &#8211; Stockmarket &amp; Business commentary<br \/><a href=\"http:\/\/shareinvestornz.blogspot.com\/2007\/02\/new-zealand-business-news.html\">Share Investor New Zealand Business News<\/a>&#8211; Get more business news<br \/>Discuss this topic @<a href=\"http:\/\/www.shareinvestorforum.com\/\"> Share Investor Forum<\/a> &#8211; <a href=\"http:\/\/shareinvestorforum.com\/ucp.php?mode=register&amp;sid=450a61250472e03fa25c205c9c1723f1\"><strong>Register<strong><\/strong><\/strong><\/a> free<br \/><a href=\"http:\/\/www.currency-market.blogspot.com\/\">Share Investor&#8217;s Daily Forex Updates<\/a><\/p>\n<p><span style=\"font-weight: bold;\">Recommended Amazon Reading<\/span><\/p>\n<table id=\"searchResults\" cellspacing=\"0\">\n<tbody>\n<tr class=\"clsOdd\">\n<td class=\"tdimage\"><a href=\"http:\/\/astore.amazon.com\/shareinvestorbookstore-20\/detail\/0060555661\"><img decoding=\"async\" src=\"http:\/\/ecx.images-amazon.com\/images\/I\/41rcIrKhYiL._SL75_.jpg\" alt=\"The Intelligent Investor: The Definitive Book on Value Investing. 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Berkshire Hathaway, the investor\u2019s company is, along with Appaloosa Management and Avenue Capital, the hedge funds, a big holder of Res Cap\u2019s debt. Res [&hellip;]<\/p>\n","protected":false},"author":833,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-110266","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/110266","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/833"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=110266"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/110266\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=110266"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=110266"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=110266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}