CNBC BUFFETT buying into Goldman

Discussion in 'Wall St. News' started by W4rl0ck, Sep 23, 2008.

  1. W4rl0ck


    $5 Billion pref; $2 Billion common
  2. W4rl0ck


    The Bernanke Paulson put.

    NEW YORK, Sep 23, 2008 (BUSINESS WIRE) -- The Goldman Sachs Group, Inc. (GS:

    , , ) announced today that it has reached an agreement to sell $5
    billion of perpetual preferred stock to Berkshire Hathaway, Inc. in a private offering. The preferred stock has a dividend of 10 percent and is callable at any time at a 10 percent premium. In conjunction with this offering, Berkshire Hathaway will also receive warrants to purchase $5 billion of common stock with a strike price of $115 per share, which are exercisable at any time for a five year term.
    In addition, Goldman Sachs is raising at least $2.5 billion in common equity in a public offering.
    "We are pleased that given our longstanding relationship, Warren Buffett, arguably the world's most admired and successful investor, has decided to make such a significant investment in Goldman Sachs. We view it as a strong validation of our client franchise and future prospects," said Lloyd C. Blankfein, Chairman and CEO of The Goldman Sachs Group, Inc. "This investment will further bolster our strong capitalization and liquidity position."
    "Goldman Sachs is an exceptional institution," said Warren Buffett, Chairman and CEO of Berkshire Hathaway, Inc. "It has an unrivaled global franchise, a proven and deep management team and the intellectual and financial capital to continue its track record of outperformance."
    The Goldman Sachs Group is a bank holding company and a leading global investment banking, securities and investment management firm. Goldman Sachs provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.
    SOURCE: The Goldman Sachs Group, Inc.
  3. $7 billion is a large percentage of his change. He is betting Goldman will recover and prosper.
  4. wow that is a high price to pay for investment. 10% a year...but i guess if it gives you the backing of buffett then it's worth it.
  5. If you were short, pray for a meteor to hit
  6. achilles28


    Surprised to see this.

    I though Goldman was underwriting shit debt, selling, then short selling CDO's.

    Cream of the Crop, we were told.
  7. W4rl0ck


    Actually its $5 Bill to Buffett and $2 Bill to the public.

    Is this a bottom in financials?
  8. cszulc


    Buffet is a long term bull obviously so we may bounce off these lows but I think we go lower after we hit upwards of 1320+ S&P. Heck, the guy is short long term SPX puts that shows how long term bullish he is.

    This news sent S&P futures up 22.50 after hours here, bullish news setting up for a huge rally at open tomorrow. Probably orchestrated by the PPT??
  9. Without conservative white men with money, you're nothing, lol
  10. Samc


    "This news sent S&P futures up 22.50 after hours here, unbelievable news setting up for a huge rally at open tomorrow."

    Where did this happen?

    Never mind...just looking at delayed over here, thanks anyways.
    #10     Sep 23, 2008