Wire services
Yesterday, we told you Buffett was itching to spend on a billion-dollar acquisition.
Well, FT.com reports he found something.
“Berkshire Hathaway will pay $1.5bn to buy a portfolio of home loans from Residential Capital, the bankrupt mortgage lender formerly part of Ally Financial, the auto lender owned by U.S. taxpayers,” says Financial Times.
Earlier this week, Buffett told CNBC the U.S. housing industry is starting to rebound, but it is still well off its peak. He says Clayton Homes, one of Berkshire’s subsidiaries, is selling 10% to 15% more manufactured homes and Berkshire’s real estate brokers are handling 15% more transactions.
He said the housing recovery will help hiring eventually.