Well, Warren Buffett did say he wanted to pay higher taxes, and we suppose his investment into Bank of America resembles something like a boon to Treasury, even if it’s just a sense of relief.
A quick market reaction while we get a grip on this:
Up 17 per cent on a day when the rest of the market is roughly flat.
Meanwhile, via Markit, CDS on the bank’s bonds are now at 280 basis points, 93 basis points tighter than yesterday.
More to come…