Citigroup already rebadged its consumer lending business from CitiFinancial to the eye-roll worthy OneMain. We guess one more name change couldn’t hurt: “Grandson of Berkadia.”
Let’s explain.
Warren Buffett’s Berkshire Hathaway is part of a group in exclusive talks to buy Citigroup’s consumer-lending business, reported our colleagues Serena Ng and Mike Spector. Other members of the bidding group include Centerbridge Partners and Leucadia National Corp.
The latter is a sprawling conglomerate some observers have compared to Berkshire. Leucadia owns pieces of businesses from an Australian iron ore miner to investment bank Jefferies. Berkshire Hathaway owns businesses in industries ranging from kitchen knives to railroads. Leucadia’s chairman even scribbles a shareholder letter reminiscent of Buffett’s annual epistles.
In fact, in Buffett’s letter to shareholders of Berkshire Hathaway in February 2010, the Oracle lauded the deals he had done with Leucadia. In 2009, Berkshire and Leucadia bought Capmark, a commercial mortgage origination and serving business, and renamed it Berkadia Commercial Mortgage.
Buffett predicted to Berkshire investors more joint deals would be coming:
“Our partner in this operation is Leucadia, run by Joe Steinberg and Ian Cumming, with whom we had a terrific experience some years back when Berkshire joined with them to purchase Finova, a troubled finance business. In resolving that situation, Joe and Ian did far more than their share of the work, an arrangement I always encourage. Naturally, I was delighted when they called me to partner again in the Capmark purchase.
Our first venture was also christened Berkadia. So let’s call this one Son of Berkadia. Someday I’ll be writing you about Grandson of Berkadia.”
