Bank investments were no bathing beauties According to the NY Post, lately Wall Street has even financial whiz Warren Buffett seeing red. Facing a wave of dour bank earnings this week, the legendary investor is ringing up billions in paper losses in some of his biggest financial investments, including Bank of America, Goldman Sachs and Wells Fargo.
Over the past three years, Buffett has bet big on the nation’s beleaguered banks, accumulating shares of Wells Fargo as well as extending a $5 billion lifeline to Goldman during the depths of the financial crisis.
More recently, in August, Buffett extended a $5 billion loan to embattled BofA as the bank was facing a withering assault on its stock because of questions about its mounting mortgage liabilities.
Buffett’s bets on the nation’s biggest banks haven’t stopped the slide in financial stocks. The “Oracle of Omaha,” who said he’d dreamed up his $5 billion deal with Bank of America while in the bathtub, is underwater on his investments. Indeed, Buffett’s Berkshire Hathaway, which holds some 342 million Wells Fargo shares, has seen the value of that stake fall more than $2.1 billion since the beginning of the year.
Read more: http://www.nypost.com/p/news/business/oracle_all_wet_47o2XmK020cuWl2uzCefJI#ixzz1b6jnxQc4
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