Warren Buffett made a deal with BOA, whereby BOA issued him 5 billion dollars of 6% preferred stock. The deal was good for BOA, which allow BOA to increase its reserves to booster its firewall against new US regulations requiring big banks to increase their reserves, and against the possible contagious threat that the EU debt crisis and slow world economy might infect the US economy.
Buffett's $5,000,000,000 of BOA's preferred stock carries options that allow Warren Buffett to covert it into BOA common stock at $8.00 or$8.50 per share, (eg not sure about the exact conversion price, somewhere in this range). It was a very sweet deal for all parties involved, but especially for Warren Buffett. $154,000,000 ------------------------- = 3.08% gain is that big of a deal. LOL $5,000.000,000 Regards, LelandJ On 02/10/2012 10:34 PM, Nicholas Geti wrote: > Now we know why Buffet has been so happy with Obama. > > Warren Buffett's stake in Bank of America Corp. increased in value by $154 > million after President Obama and the U.S. Justice Department announced a $25 > billion foreclosure abuse settlement with the five largest U.S. banks > Thursday, records show. > > http://freebeacon.com/warren-buffetts-net-worth-jumps-154m-thanks-to-mortgage-settlement/ > > > > --- StripMime Report -- processed MIME parts --- > multipart/alternative > text/plain (text body -- kept) > text/html > --- > [excessive quoting removed by server] _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[email protected] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
