Paulson, Bernanke, Hume, Cox, Sants, Draaisma, G Cox, Sam, Bush, Rosenburg, Barber, Authers, Tett, Pot Luck, Bandit No1.
Do not underestimate the impact of this story:
Buffett invests $5bn in Goldman By Greg Farrell in New York
Goldman Sachs is raising $7.5bn in capital, including $5bn from Warren Buffett’s Berkshire Hathaway, and another $2.5bn through the sale of common stock to other investors, the bank said late Tuesday.
The boost in equity comes one day after Goldman Sachs received an accelerated approval from the Federal Reserve to restructure itself as a bank holding company.
The transition from pure investment bank – which could operate outside the regulatory purview of the Fed – to bank holding company was designed to allay investor concern about the future of Goldman’s investment banking model.
The move was also perceived as something of a capitultation in the wake of an investor stampede that wiped out three of New York’s top five investment banks in the last six months. Mr Buffett’s $5bn infusion comes in the form of a private placement of perpetual preferred stock, the company said.
And don’t forget that the buyer here is a long-term investor who takes a view and holds on through the pain. Hence “his” not “the”.
Goldman to Raise Capital, With $5 Billion From Buffett – NYT
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