issued 50.000 shares of preferred stock for total of 5 billion.Now if BAC goes bankrupt he would be first in line to redeem liquidated assets and shareholders would get screwed Berkshire gets 6% annually. Buffett is just a shill a frontman for whats coming for BAC. Yes bankruptcy. Look behind the curtain BAC is crooked.
On the face of it,it would seem the dumbest of choices to raise cash. Money markets offer less than 1% interest and he could have raised all the cash he would ever need through the FED window at less than a half of one percent and failing that private money could have been raised at 1% not 6% demanded by Buffett plus 170 million warrants. This spanks of a private contract that would involve Buffett in future plans of either a controlling interest or outright ownership. Moynahan should have been fired for throwing BAC cash down the drain but he wasn't and won;t be for obvious reasons. BAC IS A $15 STOCK TRADING AT A HUGE DISCOUNT AND THAT COULD ATTRACT OTHER INTERESTS OTHER THAN BUFFETT. JMO T
Buffet is an investment guru...he has the best analysts and people that does work for him. I'm sure he won't invest in a company that he will lose money on. LOL. There are so many companies that he invest in and lose money.