This page has been archived and commenting is disabled.
Bank Of Berkshire America: Buffett To Buy $5 Billion In Preferred Stock In Bank Of America
Goldman bailout part 2 is here. And so the Octogenarian of Omaha doubles down on another taxpayer bailout. At least we can put aside all the lies that Bank of America did not need capital. It needed capital: $5 billion of it. It also confirmed it was completely locked out of both debt and equity public capital markets - the bank's only recourse was a private raise with a crony capitalist who is once again doubling down on the global ponzi.
From the press release:
Bank of America Corporation announced today that it reached an agreement to sell 50,000 shares of Cumulative Perpetual Preferred Stock with a liquidation value of $100,000 per share to Berkshire Hathaway, Inc. in a private offering. The preferred stock has a dividend of 6 percent per annum, payable in equal quarterly installments, and is redeemable by the company at any time at a 5 percent premium.
In conjunction with this agreement, Berkshire Hathaway will also receive warrants to purchase 700,000,000 shares of Bank of America common stock at an exercise price of $7.142857 per share. The warrants may be exercised in whole or in part at any time, and from time to time, during the 10-year period following the closing date of the transaction. The aggregate purchase price to be received by Bank of America for the preferred stock and warrants is $5 billion in cash.
“We are building the best franchise in financial services and we have laid out a clear plan to deliver long-term shareholder value,” said Bank of America Chief Executive Officer Brian Moynihan. “I remain confident that we have the capital and liquidity we need to run our business. At the same time, I also recognize that a large investment by Warren Buffett is a strong endorsement in our vision and our strategy.”
“Bank of America is a strong, well-led company, and I called Brian to tell him I wanted to invest in it,” said Berkshire Hathaway Chairman and Chief Executive Officer Warren Buffett. “I am impressed with the profit-generating abilities of this franchise, and that they are acting aggressively to put their challenges behind them. Bank of America is focused on their customers and on serving them well. That’s what customers want, and that’s the company’s strategy.”
»
- 23252 reads
- Printer-friendly version
- Send to friend
- advertisements -
i wonder that is the usury rate? 20- 30 - 50%
alx
Stock up 24% right now lol what a joke
Irrespective of the company, when there are price moves of this magnitude (25%+), there is something fundamentally wrong!
Let me get this right. BAC just got another master. Looks like this horse can get whipped some more.
If we knew the details we would all splatter our screens with projectile vomits.
I wonder if Buffett thinks this will get him in bed with Becky Quick?
Buffet knows that the economy is CocaColaDairyQueenNebraskaFurnitureMartLicious:
08-25 9:31: Pimco's El-Erian says Bernanke must avoid QE3 in Friday's...
Pimco's El-Erian says Bernanke must avoid QE3 in Friday's speech ECONOMIC COMMENTARY
says
The Bernank is lobbying the TOTUS to get El-Erian branded as a threat to national security.
--In other Recovery Summer™ 3.0 News--:
Foreclosures made up 31 pct. of home sales in 2Q
The Associated Press - 31 minutes ago
--and even with record low mortgage rates--
New-Home Sales Fall, 2011 Could Be Worst Year In History - ABC News abcnews.go.com › Money
2 days ago
---and, just for the big cherry on top, the real unemployment rate is confirmed by yet another source to be higher than 20%--
The Jobless Effect: Is the Real Unemployment Rate 16.5%, 22%, or ?
Spooky...
"Black Tuesday, 1929. A wind came by and blew a few cards off the house of said cards. People saw stocks were actually falling (something they hadn't done in a long time) and the trendreversed. People hurried to get out of stocks and minimize their losses. As this happened, more people did the same which exacerbated the situations.
J.P. Morgan made a valiant effort to save the economy by putting the modern equivalent of tens of billions of dollars into certain banks, but to no avail. Folks wanted out quickly at whatever cost."
http://www.essortment.com/causes-great-depression-37980.html
Wow. I just love the incredible foresight and knowledge this wise ol' investor has. It's truly amazing. He meets with Obama, then has the one-in-a-million vision to invest in BAC, a wholly insolvent entity.
It takes courage people for someone with such incredible investments skills to invest in an insolvent bank.
NOW I'M TURNING MY FUCKING SARCASM OFF!!!!
Warren's a bankster thug. It's easy to tithe your excesses as he does and garner adoration on the surface, meanwhile under the radar you help manipulate this gloriously free market.
I'm ready to puke. Thug.
Been there, done that.
They essentially took Cramer's advice proffered a couple days ago:
"Find a billionaire to vouch for you..."
So did Berkshire have $5 billion in cash "just sitting there," or did they have WF print it up for them? . .
Probably took it from their loan loss reserves, knowing they won't need them. *wink, wink, nudge, nudge*
He had about $48 billion in cash
Fuuuuuck meeeee
doesn't bofa own merrill lynch who is a bullion bank
maybe this is a backdoor gold buy right before open market operations in gold very shortly
Looks like Warren's BAC botox inject will work for a while. Can't wait to see what happens tomorrow in Jackson Asshole. It seems to me that there are a lot of poeple on one side of the boat.
Hold the phone !
"Becky" Quick is calling in live on CNBC -- ostensibly from her maternity leave/breast feeding session with the new Junior Quick -- and reporting on Uncle Warren's exercise in senility. These two are curiously -- and unsettlingly -- joined at the hip.
What's wrong with a Dec 29th/April Fool relationship? And who said the Junior Quick is who we assume he is? The world is full of stranger bedfellows than these. :)
Ha -indeed, CD.
Touche !
Junior Quick ? There is a curious resemblance, though...
http://newsimg.bbc.co.uk/media/images/46615000/jpg/_46615134_2--warren-b...
I can't wait to see the pictures of Junior Quick so we can compare them to Warren.
Try adding horns and hooves to the above, then youre closer.
Becky should have stuck to blowjobs for interviews. One too many rum and Cherry Cokes on the plane to China?
.
Becky Quick is out on maturnity leave?
GET OUT of here. She was pregnant? I'm serious. Oh, the magic of Hollywood.
Hi CD.
Indeed.
And one has to wonder how Warren's "investment" has been backstopped by the US taxpayer.
thinking the same thing....wasn't it earlier this week or late last week the Teleprompter in Chief was said to have called Buffet?
You remember correctly. Thinking the same.
(Green arrow for your sidearm.)
Looks like my P226 Elite Stainless.
http://www.sigsauer.com/CatalogProductDetails/p226-elite-stainless.aspx
close...P232
I see it now that I'm squinting at your Avatar. Tyler needs to put in bigger Avatar's or this old man needs better eyes. I love how smooth the Sig action is. Nothing like it.
http://www.sigsauer.com/CatalogProductDetails/p232-stainless-whogue-grips.aspx
Yep. He already knows the bailout terms are finalized.
At least the old fart understands "Too Big To Fail". Granted he squeezed them pretty good 6% + 700K in the money warrants, but when B of A goes down and the government steps in to save them, Warren will be at the front of the line. Warren also said, "this is an investment in the United States". He wants it to look like he is the brave captain of capitalism willing to go down with the ship.
"At least the old fart[Warren] understands "Too Big To Fail". Granted he squeezed them pretty good 6%..."
Are we still talking about Becky Quick?
I thought we had moved on to "bailouts".
Becky is just looking to quit her day job, when Uncle Warren sets up a trust fund for the little bastard.
BTW, does Zerohedge make some money everytime I click on the "Obama 2012" ad? Does Obama's campaign fund pay for the ads or is Google giving them ad space for free? The fucking asshole comes up about every third page.
Hi folks, this is my very first comment at ZH, and I have to say that by no means I am an expert in finance... so please be gentle with me...;-)
Just wondering: that preferred stock 6% dividend per annum, couldn't it be that 6% dividend comming from the equity share BAC owns from the FED? Could it be possible that there is some private agreement for Berkshire Hathaway to own the dividend rights that in turn BAC has on their share of the FED? In that case, if finally BAC crashes Warren Buffet would have secured a very good damm deal...
I know I came a bit late into the conversation but... any thoughts?
there is no need for any backstop. The warrants themselves have a value far above the 5 bn Buffet paid for the preferreds - and he gets those 5 bn back with interest! So Zh was obviously right that BAC was really in desperate need of cash. I wonder what Bruce Berkowitz thinks about all this. I could imagine he has a lot less sympathy now with BofA's CEO. I mean, he made a public cc with Moynihan and now the whole world can see how he (and all other listeners) got bullshitted to the hilt. And Buffet got such stunning terms. I mean, he could at least have asked Bruce if he wanted to participate with a couple hundred million $ , no? but perhaps he has...?!
Total BS. First of all, he picks NOW to get involved in Bank of Countrywide Merrill Lynch. Forget about the fact that is against all of his investment "criteria". So much for being a long term investor... this is a trade pure and simple. Just like Goldman was. He throws his name and money around knowing the equity will get goosed. Except, you better watch out this time Uncle Warren... this ain't The Squid. There's LOT's of bodies buried around this dump of a stock. This may be the one that finally tarnishes your name.
Other sources are reporting this is 50,000 preferred shares at 100,000 apiece with a 6% dividend. Shows how desperate BAC is. I just shorted at 8.60, and I'm already making some fiat. Everyone will recognize that it took this sugar daddy to save BAC so that Buffett can help his buddy Obama out. They've got Soros left, but how many other billionaires out there will do what they can to save O's arse?
Congrats on the fiat. After the ass-rape that the SWF's took injecting capital WAY TOO EARLY into the banking system last time, the bastards can't count on that this time either. Europe will trigger everything.
PS- thanks for the hat tip Uncle Warren... now we know we REALLY have a tsunami coming if you're touching this POS.
Article lead-in says it all.....Goldman bailout part 2 is here.
Unfortunately.....This like giving artificial respiration to a drowning victim......may get the heart going but the victim is still brain dead.....
“I remain confident that we have the capital and liquidity we need to run our business.
-So you can scrape together enough cash to keep the lights on? Now theres a glowing endoresment if you ever heard one.
"At the same time, I also recognize that a large investment by Warren Buffett is a strong endorsement in our vision and our strategy.”
-Uncle Warren getting in at loanshark rates isnt a strong endoresment. Its desperate times calling for desperate measures.
Damn right Uncle Warren is getting loanshark rates - and how do the stockholder of BoA benefit from 700 million warrants?
Warren's no dummy, and likely there is some kind of discussion with the Fed and Treasury for bailout of BoA hence Warren is investing in a government guaranteed company and getting a great return, while the taxpayers are on the hook for the results of the "Strategy"....
Could turn out to be a very smart move for Berkshire.
The major risk I see is if BoA is "WAMU'd" into good assets in a bankruptcy. I don't think citizen sentiment is where it was in 2008... hence objections may abound.
Does anyone else feel like zero hedge gets it wrong as much as it gets it right?
I here that. Virtually no mention of Jimmy Buffet.
Wasting away again in Bank of Americaville.
Looking for my bailout of stock.
Some people claim that it's an insider trade.
But I know, Uncle Sam can be bought.
Hehehe
Have you seen what Ray Stevens has been doing?
http://www.youtube.com/watch?v=J6TcpfBHlbs
Ray Stevens - Obama Budget PlanAnd then there is this
http://www.youtube.com/watch?v=0-tsgMsU4Ws&feature=related
Wasting Away in ObamavilleTaxing the rich
I know there’s a hitch
All of those Gulf waters smothered in oil
Beatin’ my Racism drum
Singin’ my immigration hum
Smell those voters they’re beginnin’ to boil
Wastin away again in Obamaville
Searching for my lost majority
Some people claim that there’s a Bush to blame
But I know it’s my own naivete
I don’t know the reason
I stayed here all voting season
Nothin to show but higher unemployment
My wife left for Spain
Spending those tax dollars in vain
All I’ve got left is disappointment
Wastin away again in Obamaville
Searching for my lost majority
Some people claim that there’s a Bush to blame
But I know it’s my own naivete
I blew out my mandate
Hoping it was Pelosi and Reid voters would hate
But now I know they’re too smart for that
I hope there’s life in my lies
And that people don’t realize
The truth before November
Wastin away again in Obamaville
Searching for my lost majority
Some people claim that there’s a Bush to blame
But I know it’s my own naivete
Are you too retarded to tell the difference between a green arrow and a red arrow?
The Green Arrow is Oliver Queen and Red Arrow is grown up Speedy.
What tactless twat would junk a DC comics reference? Especially one regarding classic characters. For fucks sake Speedy was a JUNKIE! A Goddamned junkie who clawed his way back into the hero's pantheon.
marvel fans, that don't like their heroes, as homer puts it, "Flaaaaaaaming"
Where was BAC 1yr, 3yr, 5yrs ago compared to today?
ZH lays out the facts. There was nothing untrue with what Tyler has been saying. BAC has had a firesale the last two weeks and now raises $5b more ala Goldman.
If you are too ignorant to see this is a manipulated market and you are a puppet, maybe you should go troll somewhere else.
Yes... they've been selling off various business units around the globe for months now.
I hope you spank your son often.
I have been part of zerohedge for a while now... Own silver and gold to the hilt.... Was just making an observation. Look at the animosity. Never trolled in my life.
Since Tyler is wrong so often, you should probably just go sell your 5 shares of GLD and 10 shares of SLV...
thing is, ZH is right about half of the time on subjects that are at the leading edge of financial news and that the MSM and other protectors of the staus quo try to keep from the public (for our own good) an when they are wrong they are at least making a genuine effort to put it our their and they do not use vague/ambiguous language which leaves one wondering about their interpretation. under the circumstances their efforts are nothing short of heroic (and heretic) and your shitty comment was way ignorant but it is cool that you make the observation so the forum can let you know what a naive ass yuo are
I look at Zero as the best overall web site for salient insight. Writers make arguments (sometimes good, sometimes.... not so good) and its up to the readers to filter. I love this site! That said, the F-bombs and name calling is a bit tiresome as are accusations of Trolls and Shills. There certainly are trolls out here. So what?
BTW, I miss Robot Trader. People who take a contrary stand are to be lauded. After all many ZH bloggers are the ultimate contrarians when it comes to national "finances" and "the establishment."
Thanks for commenting...
Looks like i have also been a member longer than most of you pukes.
Does anyone else feel like the trolls always make baseless assertions without any evidence and expect people to just accept it as fact.
I thinks that's part of the definition of a troll?
There goes Tyler's sub-1000 ES set-up for QE3.
Seriously though, Warren was reducing exposure to BAC all throughout 2008-2009 in favor of WFC and some other more conservative financials. Whatever explains the change of heart is a mystery to me: the terms of the preferreds are not too usurious. I guess the warrants are what sealed the deal.
BAC is in a pickle. Buffet likes pickles, on sale pickles.
I would think that a 6% return on a 5 billion investment is pretty darn good (of course it pales next to credit cards, but that's another story) especially if he gooses the golden goose enough to use those additional purchase points when the stock goes above that magic mark (snort) to claim a few extra mil. Of course, he has to goose it pretty good, hope he brought something to smooth the way
That 6% has to come from somewhere, from here it looks like a Buffett frontrunning with cash due to flow from the taxpayers in some manner, shape or form.
BAC's problem is capital adequacy but its Real Problem is cash flow. Right now cash flow is negative and the Buffett deal does not address this at all.
There are two runs on BAC: out of its stock is one but its balance sheet is still leaking. 'Part II' of the BAC bail is TBA.
This news seems amazing knowing what a black cesspool BAC is. But it cannot be considered an investment. It is charity.
It makes sense if you've read the Buffett biography "Snowball." Warren's father was a Republican Congressman and Warren believes he's very lucky to have been born in the USA. Couple that with his recent massive giving to charity, and the picture is clear. This "investment" is charity for his favorite cause -- the America that he remembers.
alx-he made $1BB in one month with his attempt to take over CEG back in '08. A $5BB investment with 20% in one month. Some vig.
And don't forget the GE Bank and Holding Company. His $5BB "investment" went to pay that week's payroll.
- Ned
The preferreds earn a 6% rate of interest.
The 10-year at-the-money warrants would have had a theoretical value of nearly $3 per share (using $7 BAC common stock price and a generous implied volatility value of 45%) . . . So Buffett collects 6% p.a. and pockets a warrant (trades at 80 delta) that is worth 40%+ of the common stock value.
The preferreds earn a 6% rate of interest.
The 10-year at-the-money warrants would have had a theoretical value of nearly $3 per share (using $7 BAC common stock price and a generous implied volatility value of 45%) . . . So Buffett collects 6% p.a. and pockets a warrant (trades at 80 delta) that is worth 40%+ of the common stock value.
ES futures and Berk CDSs go gonzo crazy.
Brilliant! If you can't be smart just cheat!
6% - BAC Short mega implosion!
Deal we could never get
kah-row-nee-ihsm
typical
Senile moron, but today he's my best friend, since I went long yesterday 6,49
Ah yes, Buffet is high on hopium. Let's see, remember the great depression. What did all those famous rich old people do again to improve "CONfidence" right before the collapse? Oh yeah, buy stock. Can I have some "preferred" shares too Warren?
You were around that long ago to remember? dam
I wasn't, but my physical gold was. I sold my paper gold last november for a 437% profit to purchase more land and equipment. How long have you been in the market? If you entered the market in 2000, then you are still down 30%. In other words it took you ten years to LOSE money. Keep supporting the banksters if you like. I choose to support myself and my family. Good luck.
Unless that guy is a known troll, I don't get where he asserting supporting the banksters nor not supporting himself or his family.
Or, unless he edited his post after your reply.
Looka like simple snark to me.
Did you skip History in school? You can obtain History Books (gasp!) covering that subject extensively.
The Hubris trade - When you are absolutley ,positively sure that your posse is completely in control of a situation and money will be made.
The cynic in me sees a little choreography in the last couple of days with this and gold. I think Bernanke is going to give a steady as she goes speech citing green shoots (yes, I said it) of gold down, investment up and employment flat. All the while, being prepared to shoot a load of liquidity on his friends.
Warren always buys too early. This is no exception.
Omaha thief cannot save the whole banking industry, his wells fargo bank and all other his business will also crash together with all other banks.
The Omaha thief and The Commander in Chief
this whole week has been orchestrated by The Old Country Buffet. funny this on same day as Jobs stepping down
this is perhaps the greatest global government propoganda week of all time
So is it Obamaha..., or Omabama?
They will be pushing him front center in his wheelchair to establish the next meme.
It will get like Dick Clark and Rock'in Eve.
Buffet says "be fearful when people are greedy, and be greedy when people are fearful". The guy puts his money where his mouth is. And yes he might be wagering on a bailout. But since this site is about making some money, we might want to consider the play.
No wager at all. He received assurance from the POTUS earlier this week that BAC would be bailed out. There will be no TBTF failures.
Spot on. To drop $5Bn on this stinking P.O.S. would require an unconditional tax payer guarantee. To think otherwise one would have to be severely brainwashed or missing a good portion of their frontal lobe.
Ahhhh....the full faith and credit of Bank of America.
That sounds about right Steve. Will this cash influx save BAC? It definitely will give it a longer life..I really was hoping to see it implode. It just goes to show The TBTF club is truly that!
Screw Buffet...I hope this backfires on him!
Exactly.
That is why he was meeting with Obummer....to discuss the Bailout Buffet.
You know it. Public covers the risk, Warren pockets the profits. He's probably going to get billions for this. The whole world is a joke. That is the best reason to buy gold and silver.
Right you are. Obviously he received the guarantee of the treasury and the fed in addition to the sweet terms. Financial confidence is a national security issue don't you know. It pays to be a shill for the Oligarchy.
Exactly.
Here you have a guy, The Crony Capitalist of Omaha, who takes phone calls from The Teleprompter on "economic advice" and is probably on Benron's speed-dial as well. Ask yourself - do you want to be on the other side of his trades?
Benron's going full-on QE3 tomorrow - probably not even going to try to hide it. This will be the "helicopter drop" moment we've all been looking for.
Actually this site is not all about making money. Read up son www.zerohedge.com/about
ty good reminder of mission statement, before my time. I like.
The other Buffett said this
Nibblin' on sponge cake,watchin' the sun bake;
All of those tourists covered with oil.
Strummin' my six string on my front porch swing.
Smell those shrimp
They're beginnin' to boil.
Wasted away again in Margaritaville,
Searchin' for my lost shaker of salt.
Some people claim that there's a woman to blame,
But I know it's nobody's fault.
Don't know the reason,
Stayed here all season
With nothing to show but this brand new tattoo.
But it's a real beauty,
A Mexican cutie, how it got here
I haven't a clue.
Wasted away again in Margaritaville,
Searchin' for my lost shaker of salt.
Some people claim that there's a woman to blame,
Now I think, - hell it could be my fault.
I blew out my flip flop,
Stepped on a pop top,
Cut my heel, had to cruise on back home.
But there's booze in the blender,
And soon it will render
That frozen concoction that helps me hang on.
Wasted away again in Margaritaville
Searchin' for my lost shaker of salt.
Some people claim that there's a woman to blame,
But I know, it's my own damn fault.
Yes, and some people claim that there's a woman to blame
And I know it's my own damn fault.
Yeah, it's about MAKING money, not LOSING money. Investing in bailed out banks is not the way to make money. Period.
Guess we do not need QE3 when we have "sugar daddy" patriotic billionaires.
This is also a confirmation that BOA is DEAD.
not really the government will get its meat hooks into it per the countrywide settlement
omaha theif and obama chief can then hold hands. one gets $ the other gets more power
Seems like common shareholders are about to be wiped out but 'tards are buying anyway of course.
@cbaba, as much as many of us dream about the end of bac and c and jpm much the same way krugman dreams of aliens, it doesnt confirm they are dead. this investment changed the investing mindset for bac. buffetts 5 billion was the antidote to their demise.
This is cause to ignite the rocket on the futures? BS
I thought Buffet was going to cut a $5b check to the treasury.
Perhaps he considers this the same thing.
Hahaha, it's a "Build (Bank of) America Bond"
no the treasury writes him checks
he ll pay higher taxes if he gets the kick backs of colluding with the government
he is a scumbag
The beauty of this is that Buffoon stands to lose nothing and gain big, depending. Such a rigged game, main street stands no chance.
I'd like to know one lever, ONE lever, except non-participation that anyone on main street has.
None.
Vivek
http://aadivaahan.wordpress.com/2011/08/24/precursor-03-bottom-falling-out-still-still-and-a-gander/
There's that whole ballot thingy, if they could pull their heads out of their asses and use it effectively. (still breathing in the meantime)
Ah, but 2000, hanging chads, electronic voting machines, Florida, then Ohio, mike mcConnell....... all that happened, ne?
Plus, how does a populace withstand the TV onslaught in election (silly) season?
Vivek
Oh regional Indian
"Plus, how does a populace withstand the TV onslaught in election (silly) season?"
With Netflix and Hulu streaming video.
I once read that polls are skewed because only those without answering machines answer the phone. That is a very limited group.
Now with the ability, and the sheer amount of channels, to stream or download commercial free video one manages to avoid any mention of politics. I'm waiting to see if that even gets considered in the next cycle. Will fewer people watch debates because they receive more concise information from other sources? Will the majority even care about the debates if they can stream Scream 4 that night?
Whenever I am in an idealistic mood, ORI, I have this thought and it depresses me. See - not very clever, I know, but certainly human.
The ONLY thing you need to believe in is that no TBTF will fail. Got it?
"There must be some way out of here," said the joker to the thief,
"There's too much confusion, I can't get no relief.
Businessmen, they drink my wine, plowmen dig my earth,
None of them along the line know what any of it is worth."
"No reason to get excited," the thief, he kindly spoke,
"There are many here among us who feel that life is but a joke.
But you and I, we've been through that, and this is not our fate,
So let us not talk falsely now, the hour is getting late."
All along the watchtower, princes kept the view
While all the women came and went, barefoot servants, too.
Outside in the distance a wildcat did growl,
Two riders were approaching, the wind began to howl.
Agreed, but I wouldn't call it Beauty!
Can you tell us who is getting smoked on the other side of this trade?
J6P
Future J6Ps?
the US Taxpayer, just like always....
Taxpayers are tapped out. Revenues have and continue to drop. The end is coming.
hold on - did Obama recently chat to the Oracle for investment advice? hmmm
He sure as hell did!
Charlie Bravo
Actually I think it was Buffet going to Obama for advice. Buffet asked Obama if the TBTF BAC was TBTF. Obama told him yes, so Buffet went all in.
Perfect example of why a debt reset WON'T work. The same folks who have created all this mess will STILL have all the power!
This is to distract attention that Berk has no succession plan for WB like AAPL did with Steve,
The American Rothschild, bailing out BAC. Has it really come to this?
Sorry Henry , Einhorn or whoever. Face-ripping short cover on.
Got to mean Bernanke goes all in tomorrow as well.
Saw his deal terms...?! none of us could ever get that kind of deal, NONE OF US! I am afraid though that this time little warren will get taken to the cleaners!
Not so sure. He basically skipped to the head of the line. This isn't about keeping BAC alive. It's all about grabbing the remaining value out of that bank. He probably figures that he can walk away with a cool 50 percent gain on his "investment". When BAC goes BK, he will be at the head of the line pulling the juiciest morsels off of the carcass, leaving virtually nothing for the shareholders. Warren may be an oily shyster, but he knows how to find the last dime in your pockets. If I held any BAC shares, I would be selling them into the short-covering rally today or tomorrow at the latest. Next week, when the air goes out of this balloon, the share price will be down with a one- or two-handle, and warren will be licking his chops, waiting for his big payday.
HAVE YOU WATCHED THE DOLLAR?
http://www.dailyfx.com/charts/netdaniachart/?symbol=EUR/USD
0 buffett
http://www.entendance.com/forums/viewtopic.php?f=17&t=738&p=18953#p18759
Warren's warrants are already $1b in the money.
If you want to make money at a firesale, it's best to show up early and get a spot next to the trough.
I was just about to post that.
Buffet--->Winning!
Just wait till QEn blast the stock to infinity...I knew I should have bought calls yesterday.
Buffet is to BofA what Rothschild is to Soc Gen. The Oligarchs protect their own banking vehicles. The guy from BofA, lobbyist point man, went to see Buffet and for ONCE changed his line : "Can you help us?", he asked. Extraordinary line from a pavlovian chimer whose corporate one liner is "I'm from Bofa. We can help you" ... "Yes", replied the Oracle of Omaha to messenger boy.
He came back to his boss and knee jerked his drop dead : "Boss, your boss says, ...I can help BofA".
Mission accomplished. Now the corporate drill can rebegin and he can go back to telling all and sundry on Corporate Capitol Hill, "I'm from Bofa, we can help you". Rinse and wash as you guys like to say.
How do you like my play?
It makes me want to puke; history plays suck. ;)
Wash, rinse, repeat, to be precise Falak. ;-)
Vivek
Huge gains on FAS for me today. What a great day to be bullish long term on financials, the most hated sector. Another great Zero Hedge fade.
Good job, now maybe you can afford a hairpiece and a beard trim.
Good for the Donald too, who went long ~7 last week. One senile moron, one a**wipe with a ridiculous hairdo, the company I keep is getting better by the day.
BAC saved? No need for QE3 then.
So stock will be moving up or down on Friday?
Schysophrenic thoughts.
Yes.
This was QE3, LOL!
$5 billion, not even half of 1 day of Bernanke POMO, BFD.
"Bank of America is focused on their customers and on serving them well. That’s what customers want, and that’s the company’s strategy."
This is very funny, i do have a very small account in BOA, they start to send me some Spanish invoice, even though i didn't request it and i don't know any Spanish. I went to the bank asked them specifically not to send me any Spanish invoice/info, that was 3 years ago, requested many times later on, they promised to correct this, they told me that it may take 3 months, but guess what, i still get an invoice in Spanish, it has been 3 years:) yes they are very focused on their customers and serving them well.:)))
This is exactly why I do not short this market. The guy is over 80 and has no clue. BAC takes care of its customers. Yeah at 29% interest on credit cards and defrauding home owners. Probably an awesome short here but will just pick away at my favorite miners.
Beyond words all.