Warren Buffett’s net worth jumped $154 million thanks to mortgage settlement
Patrick Howley
The Washington Free Beacon
2/10/2012
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.
Buffett invested $5 billion in Bank of America (BofA) on Aug. 25, 2011. As part of his investment deal, Buffett gained warrants that allow him to buy 700 million shares of Bank of America stock at a strike price of $7.14 a share. However, on Dec. 19, 2011, it was reported that Buffett was $1.5 billion underwater on his stock warrants, with shares of BofA stock trading at $4.94. But on Thursday, after President Obama personally announced the details of the settlement, BofA stock closed at $8.13 a share. The stock opened Friday morning at $8.31 and reached as high as $8.35 a share.
If Buffett had exercised his warrants Friday morning, he would have made $847 million. $154 million of that profit would have been related to the foreclosure deal.
This is not the first time Buffett has profited from Obama administration policies…
The article continues at The Washington Free Beacon.
Related: Barack Obama’s $25 Billion Dollar Campaign Laundering Fund (Insider Related)
A just-published Bloomberg report reveals what is likely the primary cause of President Obama’s much publicized $25 billion dollar housing bailout plan – simple re-election politics of the most vile kind…
Note two initial paragraphs that jumped out from the Bloomberg report:
The administration is pleased that California’s attorney general is now on board with the president’s multibillion-dollar bank settlement after securing tougher measures to benefit individual homeowners.
More good California-based news for President Barack Obama: Bank of America Corp. has become the first large mortgage provider in the Golden State to take part in a federally funded “Keep Your Home” program that would pay banks to reduce the balances that struggling California homeowners owe them.
The California Attorney General is Kamala Harris. Her brother-in-law is a gentleman by the name of Tony West who himself is an Assistant Attorney General working directly under Obama Attorney General Eric Holder. Insiders are already indicated West may in fact be among a short list of potential replacements should Holder resign his position…
Read the whole thing.
