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Buffet’s Berkshire Buying Commercial MB Capmark Financial

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Warren Buffett‘s Berkshire Hathaway and Leucadia National Corp. have teamed up to buy Capmark Financial Group‘s struggling commercial mortgage servicing and production units for a reported $490 million.

At June 30, Capmark ranked third among all commercial servicers with $248 billion in receivables. According to figures compiled by National Mortgage News, Capmark is a top five ranked commercial funder.

The announced sale comes a few days after Capmark said it might file for Chapter 11 bankruptcy protection after delinquent commercial mortgages left it with a $1.62 billion second-quarter loss. It said stockholders had negative equity of $1.14 billion as of June 30. In 2006 an investor group led by affiliates of Kohlberg Kravis Roberts & Co., Five Mile Capital Partners, and Goldman Sachs Capital Partners bought a majority stake in Capmark’s predecessor company, GMAC Commercial Mortgage of Horsham, Pa.

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