Warren Buffett and Barack Obama - Behind the Scenes? Money Maker News
Warren Buffett’s stake in Bank of America Corp. soars in value after
President Obama and the U.S. Justice Department announced a $25 billion
foreclosure abuse settlement with the five largest U.S. banks.
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. 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. In November 2011, it was reported that President Obama’s two-year
postponement of the deadline to determine the future of the proposed
Keystone XL pipeline would force North Dakota oil producers to rely more
heavily on the Burlington Northern Santa Fe Railroad. Buffett’s Berkshire
Hathaway Inc. holding company purchased the Burlington Northern Santa Fe
Railroad Corp. in a total package worth $44 billion in 2009.
Buffett has personally contributed $5,000 to Obama this election cycle,
while Berkshire Hathaway has contributed $30,800 to the Democratic National
Committee.
This summer, Obama will accept the Democratic Party’s 2012 presidential
nomination with a speech at Bank of America Stadium in Charlotte, N.C.
http://freebeacon.com/warren-buffetts-net-worth-jumps-154m-thanks-to-mortgage-settlement/
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