Warren Buffett invested $5 billion in Goldman Sachs right before they were bailed out. He then cashed in on the taxpayer funded bailout that followed. Now he drops $5 billion on Bank of America…
As I said in Part 1:
Warren says he wants to be taxed more by a President who does his bidding. So, essentially, Warren wants the “mega-wealthy” to be taxed more so his puppet politicians will have some more funds to spend on bailing out his criminal partners on Wall Street, thus saving Warren’s personal wealth, yet again….
Warren is a wolf in sheep’s clothing. On the surface, he sounds like a benevolent billionaire who is willing to sacrifice for the good of the country, yet he hasn’t done anything with his money other than invest billions in criminal vampire companies like Goldman Sachs and Bank of America, and buy off politicians. And now, he has his puppet Obama killing investigations into Bank of America as he is blatantly running a political bribery operation and pumping $5 billion of his own money into the bank.
Now here’s a recent report from Huffington Post:
Warren Buffett’s Bank Of America Investment Shows Faith In Government Support, Experts Say
The multi-billion dollar capital injection that Bank of America said it’s getting from Warren Buffett’s company is an extremely safe investment, experts said… but not because Bank of America is a strong company. Berkshire Hathaway’s investment is safe, these finance experts said, because the government has the bank’s back.
Although government regulators insist the era of bank bailouts is over, many who study the financial industry say the nation’s biggest banks are still too big to fail, meaning they must be rescued by the government when they face potentially fatal trouble in order to prevent a broader collapse of the financial system. Bank of America, the country’s largest bank by assets, is thought to rank high on this list — a perception seemingly underscored by Buffett’s willingness to put a significant sum into the company.
“This is the taxpayer giving Warren Buffett a great return,” said Amar Bhide, a professor of international business at the Fletcher School of Law and Diplomacy at Tufts University. “He knows that Bank of America is too big to fail. If it is too big to fail, then why not?”
….
The investment had many drawing comparisons to September 2008, whenBuffett invested $5 billion in Goldman Sachs during the height of the financial crisis and secured a lucrative deal for his company. That was right before the government passed a bailout package known as the Troubled Asset Relief Program, rescuing a range of financial firms and confirming the wisdom of Buffett’s bet.
Indeed, experts have argued that Buffett’s company profited handsomely off the government’s largess. Last fall, the investor penned an op-ed in the New York Times, thanking the federal government for propping up the financial system. “Uncle Sam, you delivered,” Buffett wrote. [read full report]
In related news:
FDIC Objection Throws A Wrench Into Bank Of America’s $8.5 Billion Settlement
Bank of America needs more than a $5 billion vote of confidence from Warren Buffett to get back on track. It needs to remove uncertainty over the cost of its mortgage related lawsuits but it looks like the Federal Deposit Insurance Corporation will stand in the way of that.
The FDIC filed an objection with the State Supreme Court of New York over Bank of America’s proposed $8.5 billion settlement with mortgage bond holders throwing a wrench in the bank’s efforts to put its mortgage problems behind it…. [read full report]
Related links:
My open letter to Warren
Part 1 of this series
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