Bank of America: Buffett Wins Again

That's why I'm a billionaire and you're not

That's why I'm a billionaire and you're not

Pursuant to the terms of the warrants, Berkshire expects to use its $5 billion of Bank of America 6% Preferred Stock that it now owns as the consideration to acquire the common shares. The preferred shares pay a 6 percent annual dividend, or $300 million.

Berkshire is sitting on a roughly US$12 billion paper profit, because Bank of America's stock price is more than triple the US$7.14 exercise price for the warrants.

Berkshire said on Friday it would exercise its warrants for 700 million common shares of Bank of America following a dividend increase by the lender to 12 cents per share.

The move makes Buffett the largest shareholder in two of the world's largest banks, Bank of America and Wells Fargo.

The preferred shares also came with warrants to buy 700,000 shares of BofA stock at $7.14 a share - about where they were trading at the time.

High-Rise Towers Fail Fire Safety Tests in the UK
Greater Manchester Fire Service said its fire risk audit of the site concluded the building "is safe for all residents". At least one hotel chain is calling in experts to make certain its properties meet safety regulations.

Berkshire Hathaway Chairman and CEO Warren Buffett was interviewed, in May 2016, in Omaha, Neb.

After passing a stress test on Wednesday, Bank of America's plan to pass along its wealth to its shareholders in the form of dividends and stock buybacks was approved.

Perhaps even more significant from a general shareholder's point of view, Bank of America also announced that its already-generous buyback program would be more than doubled for 2017.

In a February letter to investors Buffett laid out his thinking for the conversion, which will make him the company's biggest shareholder.

Bank of America's current largest shareholder is Vanguard Group, whose 652.4 million shares give it a 6.6% stake, Reuters data show. This is the second year in a row that Bank of America has gotten permission to increase both its dividend and buybacks.

Recommended News

  • Pam Shriver has her doubts about Johanna Konta winning Wimbledon

    Kerber will still keep her top ranking though, as World No. 2 Simona Halep was defeated by Caroline Wozniacki earlier on Thursday. As her compatriot Heather Watson was about to take to the court for the first semi-final, Konta came in to talk to the press.
    Amnesty welcomes UK Government abortion funding for women from Northern Ireland

    Amnesty welcomes UK Government abortion funding for women from Northern Ireland

    Now terminations in Northern Ireland are only permitted if there is a serious risk to the women's life or health. It said the complex moral and religious questions behind the issue should be determined by a legislature.
    Istanbul gay pride rally marchers targeted by tear gas and riot police

    Istanbul gay pride rally marchers targeted by tear gas and riot police

    Turkey's official Anadolu news agency said "an estimated 20 people" were detained after protesters did not heed warnings to disperse.
  • Is Australia Still a Religious Country?

    Is Australia Still a Religious Country?

    An independent panel appointed to examine the quality of the data collected concedes the privacy concerns had an impact. The latest 2016 Census data assesses what the national home ownership and rental rates are and how these vary location.
    Jamie Murray and Bruno Soares win doubles at Queen's

    Jamie Murray and Bruno Soares win doubles at Queen's

    Murray reached the semi-finals of the French Open before starting his grass-court campaign with a shock loss at Queen's Club. World number one Andy Murray has withdrawn from an exhibition match ahead of Wimbledon due to a hip problem.
    China sentences 16 from Australia's Crown Resorts to prison

    China sentences 16 from Australia's Crown Resorts to prison

    The marketing employees were detained in raids across China past year as Beijing cracks down on high-roller gambling promotions. The arrests took place in October past year , after a police operation believed to target Crown's marketing activities.
  • Venus Williams accused of causing fatal vehicle  crash in Florida

    Venus Williams accused of causing fatal vehicle crash in Florida

    The website TMZ reported that Williams was found at fault, but it was unclear if she was cited. Barson's wife was reportedly also hospitalized for injuries, including broken bones.
    Tinder Gold Lets You See Who Has Liked You Before You Swipe

    Tinder Gold Lets You See Who Has Liked You Before You Swipe

    It is estimated there are over 50 million Tinder users worldwide, with over a million of these being Tinder Plus users. The whole point of Tinder is that you only match when the like is mutual.
    Judge considering national freeze on Iraqi deportations

    Judge considering national freeze on Iraqi deportations

    It will either uphold Trump's ban, refuse to hear the case or say it will hear the case in the fall when the court reconvenes. Khaalid Walls, spokesman for Immigration and Customs Enforcement, or ICE, said it is now reviewing the judge's order.
  • Western wildfires so large, can be seen from space

    Western wildfires so large, can be seen from space

    The fast-moving fire was ignited after a traffic collision and has authorities warning residents about possible evacuations. A 400-acre (162-hectare) fire in Mariposa County on the western Sierra foothills is 10 percent surrounded.
    President Trump Takes Another Jab At CNN's Credibility Following Three Resignations

    President Trump Takes Another Jab At CNN's Credibility Following Three Resignations

    One day earlier, O'Keefe posted video of a CNN producer saying the network's Russian Federation coverage is mostly "bulls--. However, later on, it was found that the story had not been put through the editorial standards of CNN .

    'The Accountant' Sequel: Ben Affleck in Talks to Return

    So are YOU excited for The Accountant 2? Producers Lynette Howell Taylor and Mark Williams are also circling the proposed sequel. Speaking with CS shortly before the original film's release, O'Connor was optimistic about the chances for an Accountant sequel.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.