Thursday, August 25, 2011

Warren Watch: Buffett Puts His Guarantee On Bank Of America’s Box

Dealbreaker writes: Yesterday morning, as Bank of America continued “reaping the benefits of what Countrywide hath sowed,” Jim Cramer proposed an idea: get a billionaire to vouch for you. Just as Warren Buffett investing in Goldman Sachs had been a signal that everything was cool with the Masters of the Universe and Prince Alwaleed and his horses’ unflagging love ‘o Citi have at times kept the bank afloat, BofA, Cramer proposed, should get someone to send a message that all is good in the hood. JC suggested Carlos Slim was the guy to take one for the team, while we liked the idea of, among others, Bruce Wayne, Lynn Tilton or Warren Buffett, who enjoys spreading the love. Apparently WB is our man.

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.

http://dealbreaker.com/2011/08/warren-buffett-puts-his-guarantee-on-bank-of-americas-box/

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