BERKSHIRE REPORTED TO BE LOOKING AT RESIDENTIAL CAPITAL

Berkshire Hathaway is in talks to buy residential mortgage company Residential Capital from parent motor and commercial lender GMAC, according to the New York Post on December 24. The report did not cite any sources. Residential Capital was said by the New York Post to have come close to its minimum net worth of $250m, putting it in danger of breaching its loan compliance. Berkshire already holds debt positions in the mortgage operation. GMAC has needed government support and received $12.5bn in bailout funds because it was seen by the US government as integral to the health of the US automotive industry. Meanwhile, Berkshire Hathaway reduced its workforce by about 8.5% during 2009, bringing down its headcount to about 225,000, according to a Bloomberg report.