Thursday, August 25, 2011

BofA ‘Buying Credibility’ With Buffett - Bloomberg

BofA ‘Buying Credibility’ With Buffett - Bloomberg: "Bank of America Corp. (BAC), seeking to snap this year’s stock plunge, will pay billionaire Warren Buffett $300 million annually to do what he did for Goldman Sachs Group Inc. during the credit crisis: bolster confidence.
The $5 billion sale of preferred equity, which initially sent the shares up 26 percent, may improve investor perceptions without meaningfully affecting the source of their concern, the bank’s capital, according to analysts including William Tanona at UBS AG. The deal gives Buffett’s Berkshire Hathaway Inc. (BRK/A) warrants that could make it the lender’s largest stockholder."

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