JP Morgan May Take Over Bank Of America

[AdamLX]

Dammit! I refinanced my mortgage to get away from those assholes. So basically by the time Obama is done we'll have Chase and Capital One?

Wells Fargo too. Cap One is definitely an up and coming company in the mortgage field. They just purchased ING and are gearing up to go after the market.

[Denny]

Meanwhile, at Goldman Sucks:

[Broncojohnny]

Yea, we are going to try to short Goldman into the ground next with bullshit stories.

[Denny]

Funny how all these come out so close together.

[Broncojohnny]

Funny how all these come out so close together.

No, what is funny is that the banking sector has taken a huge hit because people are unloading the stocks more than any other sector. Yet, at the same time, the deposits at those same banks have gone up $200 billion. So, idiots are selling the stock of the bank and turning around and putting the money into an account at the very same bank.

[Sean88gt]

The ghost of JP Morgan lives.

[slow99]

Buffett $5 billion in.

[mstng86]

Bam, Buffett $5 billion in.

say wha?

[slow99]

say wha?

The oracle owns your ass.

[78X]

Buffety just saved b of a

[mstng86]

The oracle owns your ass.

I am ok with that. Where he goes, the money follows.
BAC is up 23.75%

[line-em-up]

...

Buffety just saved b of a

I heard on the radio this morning that he loaned bofa 50 million.

[mstng86]

I heard on the radio this morning that he loaned bofa 50 million.

Your missing a couple zeros

[line-em-up]

....

Your missing a couple zeros

Whoa!! 5 Billion. I think I would trust Buffet more than having Morgan Chase take over and destroy whats left of BofA.


=========

In a move that certainly has similarities to his crisis-era investments in Goldman Sachs and General Electric, billionaire Warren Buffett is putting his wallet behind another struggling financial firm, Bank of America.

Buffett’s Berkshire Hathaway, which already has a significant stake in Bank of America’s West Coast rival Wells Fargo, will pay approximately $5 billion for 50,000 preferred shares in Charlotte-based BofA. The preferred stock pays a 6% annual dividend, paid quarterly, and can be redeemed by BofA at any time at a 5% premium. Berkshire also gets warrants to purchase 700 million common shares of BofA at $7.142857 apiece that can be excercised at any time within a 10-year period after the deal closes.

BofA Chief Executive Brian Moynihan, who has come under fire for his assertions that the bank does not need fresh capital, said:

Move up Move down
6 images
Gallery: Warren Buffett's Most Notable Positions We are building the best franchise in financial services and we have laid out a clear plan to deliver long-term shareholder value. I remain confident that we have the capital and liquidity we need to run our business. At the same time, I also recognize that a large investment by Warren Buffett is a strong endorsement in our vision and our strategy.

Buffett said:

Bank of America is a strong, well-led company, and I called Brian 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. Bank of America is focused on their customers and on serving them well. That’s what customers want, and that’s the company’s strategy.

Read the full press release here.

Shares of Bank of America popped nearly 25% when news of the deal broke shortly before the market opened.

[STANGGT40]

Buffett $5 billion in.

i was going to go in on some bac today, and buffett screwed up my fire sale price!