The Oracle of Omaha Warren Buffettt is reportedly in talks with Residential Capital, the troubled mortgage lender that is a unit of GMAC.
The New York Post reported that Buffett’s Berkshire Hathaway (BRK), along with Appaloosa Management and Avenue Capital has large debt positions in the company.
Once one of the country’s leading real estate financing company, ResCap fell on troubled times after making loans to borrowers with poor credit. The company has required repeated infusions of capital from GMAC in order to stay afloat. The company has lost over $10 billion in the past three years and posted a delinquency rate on its loans of 13.4% as of June.
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