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Warren Buffett Invests $5 Billion With Bank Of America, Plans NYC Obama Fundraiser
By
Jen Chung
Published Aug 25, 2011
Modified Aug 25, 2011
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By
Jen Chung
Published Aug 25, 2011
Modified Aug 25, 2011
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Bank of America says that Berkshire Hathaway, headed by tax-loving billionaire Warren Buffett, will invest $5 billion as the company tries to emerge from its disastrous, economy-wrecking involvement with subprime mortgages. BoA's shares have recently fallen to two-year lows, so this news has helped: An analyst told Bloomberg News, "This is a tremendous vote of confidence in the U.S. banking industry as well as Bank of America. Bank of America was being punished or victimized as one of the weakest U.S. banks that could be in financial distress. For Buffett to step up like this for BofA has implications for all the other banks."
Buffett, who invested $5 billion in Goldman Sachs in 2008 (which paid off big-time), said, "Bank of America is a strong, well-led company, and I called [CEO] Brian [Moynihan] to tell him I wanted to invest in it. I am impressed with the profit-generating abilities of this franchise, and that they are acting aggressively to put their challenges behind them."
The Oracle of Omaha is also lending his support to President Obama, by way of holding a $10,000-38,500/head fundraiser for Obama at the Four Seasons. There's also a Q&A with former White House adviser Austan Goolsbee—the invite says, "As all guests are seated for dinner, Buffett will go around to all tables and shake hands, then he and Austan will sit for the program and discussion."
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Bank of America
banking
economy
president obama
subprime mortgage
warren buffett
Jen Chung
Jen Chung is a former WNYC and Gothamist editor.
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