Bank of America (BAC) is flying up nearly 25% as it is being reported that Berkshire Hathaway is dropping $5B into the hole. Ironically, Buffet has been talking to Prez Obama the past few days (on 'job creation') - I am sure no coincidence. :) This is similar to the investment in Goldman Sachs (GS) back in the dark days of 2008.
The stock is indicating high $8s in premarket. At current pricing, I believe Buffet just made $1 billion.
No position
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- 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.
The stock is indicating high $8s in premarket. At current pricing, I believe Buffet just made $1 billion.
No position
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