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.