The $5B is meaningless and gives BAC three months breathing room. Buffett has just forced an eventual bailout as JPM will not touch this shit.
Buffet is a Socialist and let him throw his money into "Bail outs". I rather see Buffet throw his money at this worthless bank then the FED GOV hitting me over the head with a second round of "TAX" the people to bail out BAC. It will fail, let it fail on Buffets dime!
Buffett is part of the PPT so it is just a donation to the PPT fund. Anyway BAC will need $50-$100 billion in order to raise their Tier one ratio so they don't go belly up. Or they could be bought by JPM or WFC.
Buffet hasnt made a penny in the last 4 years in his investments. In fact, his net worth is actually less than it was 4 years ago. Everyone thinks he is this great investor because he is worth 50 billion dollars, but he is not. He was a little above average at best and according to his recent investments, i would say below average now. Buffet made his money by keeping the 25% of the profits of his investors. In his original investment partnership, he was only in it for $100 and walked away 13 years later with $25 million. There are sooo many better investors than him, but buffet just happened to be in the right place at the right time with the right connections to invest in him. This BAC deal is going to be as bad as his berkshire hathaway deal (for those of you that have never read about buffet, Berkshire hathaway was a company that buffet continuously lost money on and he named his company the same thing to remember how much he lost)
Buffett is the ultimate government mouthpiece and douchebag asking for government bailout on one hand, and attacking working middle class on the other hand, People fails to realize his game, rounding up middle class and using it as bargaining chip to support too big to fail schemes, and make a killing on those closed end private dealing. One day before fed meeting, the timing of the story is very questionable, Buffett is the ultimate insider, illusion of long term investor. he is coming out and trying to catch a falling knife here, other has done it before, but failed and lost big on similar circumstance. Why is he so special, can he escape this time with another major killing on WallStree? Madoff is the master of private ponzi scheme, well, Buffett will be the master of catching falling knife. either way, he is douche. His deal is good for himself, bad for tax payer long term.
buffet is not going to lose anything on this deal, he bought preferred shares, and he will get paid even if common stock goes to zero, he also got warrants for common at 7smth and probably already hedged today with some options http://www.bloomberg.com/news/2011-...s-net-1-4-billion-in-profit-on-first-day.html
The warrants will be worthless when the common hit a nickel. Would you take the risk on BAC to earn 6%? I wouldn't.
We don't know the full picture, Buffet might have other reasons for this deal, for example, from the bloomberg news article: -- Billionaire Warren Buffett plans to hold a Sept. 30 fundraiser in New York City to benefit President Barack Obamaâs re-election bid, according to two Democratic officials not authorized to speak publicly about the event. -- I'm personally surprised by wall street reaction and BAC stock going up as much as it did today, this deal is a joke, if anything it shows how much trouble BAC is in, and to me is a sign of real weakness