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Buffett Stands to Profit Handsomely from Mortgage Abuse Settlement

Saturday, February 11, 2012

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It appears that billionaire Warren Buffett will again profit from a major decision made by the White House.

“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,” Patrick Howley of The Washington Free Beacon writes.

How did Buffet manage that?

Well, as it turns out, the man who has both publicly and repeatedly begged to have his taxes raised 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,” Howley writes.

However, on Dec. 19, 2011, it was reported that Buffett was $1.5 billion in the hole on his stock warrant because shares of BofA were trading at $4.94. But all that changed when President Obama announced the details of the $25 billion dollar settlement. After the White House explained the settlement Thursday morning, BofA stock closed at $8.13 a share.

Post Continues on www.theblaze.com

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  • Are you Serious

    Buffet is very very rich. He is also a complete immoral fraud!!!

    • Mutantone

      as is the President who stands to gain funds Buffett the money

    • hearmetalking

      Old man buffet needs to stuff it,All that money and all the good he could do with it yet he chooses greed. Knowing full well the best part of his life is behind him.

    • Randy131

      Buffet donates very much to charities through Bill Gate’s organization, but he’s in bed with Obama to get the inside position to make lots more money on government policies, hence him backing Obama’s attempt to raise taxes on people making $200,000.00 or more a year through working income, while Buffet makes billions in capital gains, which is only taxed at 15%, hence why his tax rate is less than people making over $200,000.00 a year, his secretary for one, who owns a home in Oklahoma where she works for Buffet, and a vacation home, with a pool and putting green, in Arizona. I wonder why Obama never insists on raising the capital gains tax rate, could it be because of his friend Buffet?

    • SofiesVoice

      Those two freaks, Obama and Buffet, are in bed together….Buffet gets his way, Obbummer gets a handsome payoff for his campaign, and it’s one money laundering deal after another. Time for Obbummer to go! And it’s time to see what Buffet is all about. He owns the railroads, so Obbummer says no to the Keystone pipeline. In California the liberals are fighting the trucking industry from pulling two trailers when it has been done in other states. No, leave the hauling business to the railroads to enrich Buffet further. Time to start making amends, Buffet. You won’t live forever…even your money won’t help in that regard.

    • daves

      I am not quite sure what the author is suggesting.

      That the Government shouldn’t have settled and should have taken the banks to court for a much higher payout?

    • msbets

      Of course they planned it together, this will make the jackal and his jackalette richer yet, OMG, no he wouldn’t want that, he don’t like rich people!!!! this f .reak is such a rotten, two faced hypocrite!!!!

    • Brian

      Why doesn’t Buffet just put his money where his mouth is and hand over 30 of his 34 billion to the government? Then he can say that he is paying his fair share. I still admire his ability to make money, for he represents a true success story but he sounds too much like a hypocrite.

    • http://firefox Sunny

      That’s the democrats for you, you scratch my back and I’ll scratch yours. They are all crooks and Buffet is the biggest of all then Obama

    • RICHARD D GREGORY SR

      “Of whom much is given much is required”.
      Spoken of on this wise, both muches are profit.
      “What does it profit a man to gain the whole world; if it cost him his own sole?”

      Mr Buffet, think about this when you count your billions.
      There is no other name under heaven by which men must be saved.

    • El Lobo Solo

      Mr. Buffet floats “the ruse” that he pays less in taxes than his secretary.
      Then why don’t you just double her pay!!!

      PS: Instead of saying you are not paying enough in taxes, why not just pay the one billion the IRS says that your company Bershire & Hathaway owes & has been sueing you for.
      LOL

    • patriot2

      obama must be working for buffet.the second george soros.

    • Tom Stewart

      Right-On patriot2 When You Look-Up The Definition Of Pathological Narcissist Liars Bastards Club, Soros/Buffett/Soetoro/Holder, Yikeess, The New Symbol Of “Obamacare Coyotes” God Bless America And The Real Tea Party Patriots.

    • ROSEBUD

      BUFFETT IS A BILLIONAIRE WHO GIVES MOST OF HIS MONEY TO CHARITABLE TRUSTS. HE SPENDS A LOT OF TIME WITH OBAMA, WHO TOLD HIM THEY WERE GOING AFTER THE BANKS WHO WERE FORECLOSING ON MORTGAGE HOLDERS WHO GOT LOANS THEY COULDN’T AFFORD TO BEGIN WITH BY CLINTON’S COMMUNITY REINVESTMENT ACT & OBAMA’S SHAKING DOWN BANKS IN CHICAGO SO POOR PEOPLE COULD OWN HOMES BY WORKING FOR ACORN AS A COMMUNITY ORGANIZER. BUFFETT BOUGHT WARRANTS IN BOA 2 YEARS AGO & THEN THE STOCK DOUBLED HIS MONEY. IT’S CALLED “INSIDER TRADING” WHICH IS ILLEGAL. IT IS WHAT CONGRESS HAS BEEN DOING FOR YEARS & IS NOW GOING TO BE ILLEGAL FOR THEM AS WELL.

  • COUNTRYBOY

    Warren Buffett CAN AFFORD HIGHER TAXES AS LONG AS OBAMA KEEPS MAKING HIM MONEY. THIS SOUNDS LIKE ANOTHER PAYOFF. I HOPE WE CAN SURVISE LONG ENOUGH TO GETR RID OF OBAMA.

    • The Bobster

      For the same reason, teachers love high school taxes.

  • jug

    The same thing with the pipe line Obama cancelled. Buffet owns the raildroad that will be used instead.

  • Dean

    You think Buffet and Obama had some back door agreement?? NOooooooooooooooooooooo!!!!!

  • Larry E

    Obama and Holder have to help out the middle class ya know, like Ol’ Warren and Soros, so what’s the big deal. If they don’t who’ll take care of ‘em when the SHTF? They’ve got CYOA down pat.

  • lizaz

    Another coincidence….hmmmm….similar to the Keystone Pipeline deal which won’t happen, so his railroad(s) might benefit???? Amazing, these coincidences, huh??

  • John

    Buffet has been a net gainer on almost everything that Obama has done since he took office. Buffet certainly is not the good guy that he and the news media protay him to be.

  • Rachelrao

    Berkshire Hathway has the largest train hauling system and Buffet knows that he will make millions when the pipeline & other come into being. He wants a recognition/legacy from BHO, and BHO is playng him, but it will be interesting to see who plays who in the end. My bet is on Buffet – he is no old fool.

    • patriot2

      he may not be an old fool,but he IS an old crook.

    • Bill

      I don’t care for his continual insistance that we all pay more income tax, but he is not a crook. He runs one of the most successful investment companies in our history. Buy stock in his company if you want to share in the rewards

    • Bill

      He is an honest businessman. Runs a great public company.

  • Steve H

    You people don’t think we’re going to get rid of obama do you? With Buffet and Soros money the election is already bought and paid for, so wake up and smell the coffee, if you can still afford it.
    They are making everything go as bad as possible so he can declare Marshal Law. The Constitution does not make any allowance for suspending elections so obama will make up yet another rule to enhance his power and control. He wants to be another Hugo Chavez or Castro. Congress can’t and won’t do anything to stop him because they are a bunch of cowards and think they will keep their power too. Their so stupid that they can’t see how worthless they are to him now. People have got to wake up and be ready to fight and even get a little bloody before this country has a prayer of survival.

  • http://www.americagonestupid.com nvrpc

    I wish you all lots of luck come November and my you get what you worked for and voted for. The nations welfare is in your hands. Now we’ll see if you can all come together towards a comon goal or is the nation so frahmented America is no more. The world is watching beause once the US folds to Socialist the rest of the world knows their a-usses are dead meat and the suffering will only get worse. Four more years of Obama and we’ll need to change our flag and do away with the quote, “land of the free” to “land of the freeloaders”

  • AppraisHer

    Another Billion$ mortgage “bailout”, under the guise of “helping” those that lost their homes to foreclosure robosigning. They may have been illegally robosigned, but they were already in foreclosure, most so deep they couldn’t be saved anyway. So lets follow the money: 1st billion$ mortgage bailout helped just over 5%, rest went into foreclosure. Where’s the rest of the money? New billion$ bailout gives $2000 to some who already lost their homes, rest of the money is a fine paid to the Fed govmt. So, barry bailed out the banks, banks foreclose on homes, barry sues the banks, banks pay out money…and the money goes round and round. Who is keeping track of all this “free” money, where it went, and to who? This is nothing more than a money laundering scheme to add to barry’s slush fund.

  • DB

    Follow the money to dig out the truth. The private bankers were duped by Frank’s and Dodd and now the rich are duping the politicians and we the rank and file are being defiled!

  • LeeF

    Buffett has forgotten one thing! He can’t take it with him!
    Hasn’t anyone ever investigated this man?
    Something just isn’t right about him, and he should be raked over the coals a few times until he proves his money has been made honestly!
    I have no problem with a man working hard, and becoming rich, but when a man flaunts it like Buffett does, actually making fun of those who don’t have his riches, he has to be taken down!

    • Are you Serious

      He did make his money honestly. I don’t really care for the guy, but that is a fact. Are you aware that when he dies, every penny left goes to charity.

  • Scales7

    Poor Willy,

    Already not taxed enough and now he stands to make even more money? It seems his troubles just never end. Hang in there Willy and remember tough times never last but tough people do.

  • toto

    People want to believe the best in people. The truth is Buffet is not much different that Madoff. It’s incredibly sad that so many people are sucked into what the media says is true, and believe such incredible garbage. Having money does not bequeath you with anything, not intelligence, not wisdom, not morality, and certainly not the gravitas to dictate tax policy. No one has stopped this man from turning over every dime he has made to the government. Always doubt those that tell other what to do with their dollars that they themselves do not do. Of all the entities I would trust to spend my money wisely, I can assure you, the government is at the absolute bottom of the list. Buffet is a fraud.

  • JRRS

    That’s his business and there is nothing illegal about his company making money in any legal way it so chooses. I do take issue with his pleadings that we should all pay more income tax. To what purpose? More bailouts, more welfare, more presidential vacations, more money for ACORN, what?

  • Bill

    That’s Buffett’s business and there is nothing wrong with his company making money in any legal way it can. Want to share in his success, buy stock in the company. I donn’t like his continual calling for people to pay more income tax. For what purpose? More welfare?

    • Mary Ann, Illinois

      Yes, it is Buffett’s business UNTIL he becomes Obama’s stooge and with BO spreads his “I pay only 15% tax” LIE. He know darn well he has already paid 35% fed and now is paying 15% additional on the same money…total 50% total tax.

  • http://eaglesforamerica.com Jeff Willis

    If Obama and Buffett are truly worried about the middle class, here’s an idea. “GRATIS” all primary residential mortgage taken out after 2005. All credit card debt taken after 2007 “GRATIS” as well. After all, this is what a king would have done in the biblical days! Obama said that he is doing what Jesus would have done. Here is his chance to make good on that assertion! Seriously, “how many yachts can you pull behind your yacht?” These bankers who have made millions, literally benefiting from the meltdown should be asked to do more than “throw a few pennies” at the problem. Such a 20 trillion dollar action might sink Mr. Buffett and J.P. Morgan Chase. But how many would benefit? What about those already foreclosed upon? Here’s an answer! Give them all a bank owned “REO” somewhere in the country! What about those who had no mortgage or debt? The Government has more than enough land to give each and every one of them 40 acres, somewhere in the country! In truth, we have had a massive wealth transfer since 1997. It may be time to reverse it. Crazy? Maybe! But what has taken place over the past 15 years is real.

  • Chuck

    Nothing wrong with Buffett making money for his company in any legal way he can. Buy stock in the company, if you want to share in its rewards. I do get tired of his continual insistance that we all need to pay more income tax. For what purpose? Pay more welfare, support ACORN, what?

  • http://delendam.wordpress.com Drik

    Buffet “deserves” a reward for his validation of Presbo’s unconstitutional actions.

  • http://adrianvance.blogspot.com Adrian Vance

    Once again we see that it all depends on whose butt you kiss. Leave it to Buffet to know which and when.

    The Two Minute Conservative at http://adrianvance.blogspot.com for political analysis, science and humor. Daily on Kindle.

  • Kathleen

    Buffett stands to Profit Handsomely from Mortgage Bank of America, Buffett is absolutely the rule, where does that leave Obama and Soros. Buffetts secretary has totally disrespected this great country of ours, he has to be paying her on the side.Whats up with this cozy situation.This will lead you Mr Buffett to one of the greatest scandals ever. I wonder if Buffetts secretary and Obama are in his will. Go home Obama , go back to your country.