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Capmark workers root for Buffett over PNC

Employees of Capmark's loan-servicing operations in Horsham, Dallas and elsewhere are hoping the partnership of New York-based Leucadia Corp. and Warren Buffett's Berkshire Hathaway ends up owning the bankrupt home lending finance company, rather than potential rival bidder PNC Bank

Employees of Capmark's loan-servicing operations in Horsham, Dallas and elsewhere are hoping the partnership of New York-based Leucadia Corp. and Warren Buffett's Berkshire Hathaway ends up owning the bankrupt home lending finance company, rather than potential rival bidder PNC Bank, which has been attending hearings in US Bankruptcy Court in Wilmington.

That's because PNC has its own rival servicing operation in Missouri, and isn't likely to need Capmark workers if it buys the assets. Whereas "Berkadia" would presumably keep Capmark in business, competing with PNC, Wells Fargo and a handful of others as an investor in Fannie Mae and Freddie Mac debt, among other business lines.

The gossip at Capmark is that Fannie and Freddie have put pressure on PNC not to bid because they want to keep the market competitive. Also, PNC faces political pressure if the bank, a recipient of government TARP investments, were to cut hundreds of jobs while putting itself in a position to pressure money-losing Fannie and Freddie on loan prices.

PNC won't talk about its plans, but insiders say it was one of several companies that took a good close look at Capmark operations earlier this year. So did Bank of America, CIBC and Deutsche Bank, I'm told.

Folks at Capmark hope Buffett's people will prove better managers than the cowboys at "buyout king" Henry Kravis' KKR, Capmark's last owner, who boosted Capmark's risky loans on the eve of the 2007-08 credit crisis, forcing this fall's bankruptcy filing.