Buffett's Berkshire seeks Fed leeway to boost BofA bet: Bloomberg




  • In US
  • 2019-10-15 17:37:15Z
  • By Reuters
Buffett
Buffett's Berkshire seeks Fed leeway to boost BofA bet: Bloomberg  

(Reuters) - Warren Buffett's Berkshire Hathaway Inc is seeking permission from the Federal Reserve to boost its stake in Bank of America Corp above the 10% level, Bloomberg reported on Tuesday.

Shares of BofA were up 3% after the report came out.

Berkshire, which has a 9.96% stake in BofA, filed an application with the Fed in recent weeks making a variety of assurances that it will passively invest in the bank, the report said https://bloom.bg/2ISBQEW citing a copy of the application provided by the regulator.

Ownership above the 10% level attracts increased regulatory scrutiny and the Federal Reserve only allows investors to take double-digit stakes on the assurance the buyer would not try to force a controlling influence.

Berkshire's biggest stock market commitment remains in financial services -- it is the largest shareholder in American Express Co, Bank of America Corp and Wells Fargo and has a significant stake in JPMorgan Chase & Co.

In 2017, Berkshire pulled https://reut.rs/2MIl8cn a similar application to boost its stake in Wells Fargo after the bank was beset by a scandal over its creation of unauthorized customer accounts.

Bank of America is slated to report its third-quarter results on Wednesday.


(Reporting by Bharath Manjesh in Bengaluru; Editing by Shinjini Ganguli)

COMMENTS

More Related News

Donald Trump says Warren Buffett makes a mistake selling airline stocks
Donald Trump says Warren Buffett makes a mistake selling airline stocks

Trump made his assessment at the White House, shortly after the U.S. Labor Department reported an unexpected surge in May jobs, and five weeks after Buffett said his Berkshire Hathaway Inc sold its airline stakes. "Warren Buffett sold airlines a little while ago," Trump said.

Hertz
Hertz's Possibly Worthless Stock Soars in Risky Recovery Bet

(Bloomberg) -- Hertz Global Holdings Inc. shares are rallying two weeks after the company filed for bankruptcy in an extreme example of the bets investors are making on recovery from the coronavirus pandemic.The car renter's stock traded as high as $3.70 shortly after the start of regular trading Friday, a 353% surge from Wednesday's close. Hertz and its rival Avis Budget Group Inc. got a boost Thursday from signs air travel is poised to rebound.Hertz also is likely to benefit from prices of used cars at auctions coming all the way back from a mid-April collapse. Market researcher J.D. Power said Thursday that prices last week were above its pre-virus forecast.Those positives aside,...

Happy Birthday, Mr. President: Trump Hits Record On Google Ads
Happy Birthday, Mr. President: Trump Hits Record On Google Ads

(Bloomberg) -- President Donald Trump's combative response to nationwide protests against police brutality has dominated the news in recent days, but a wave of ads on Google's YouTube has sought to draw attention to another event: the President's 74th birthday. In the last full week of May, Trump's campaign

Private Equity Gets a Big Win With U.S. Nod to Tap 401(k) Plans
Private Equity Gets a Big Win With U.S. Nod to Tap 401(k) Plans

(Bloomberg) -- Private-equity firms notched a major win in Washington with the Trump administration paving the way for the industry to tap a massive pot of money that has long been off limits: the trillions of dollars held in Americans' retirement accounts.The Labor Department issued guidance Wednesday effectively allowing 401(k) plans to invest in buyout firms. The agency said the move will bolster investment options for consumers and let them access an asset class that can provide better returns than stocks and bonds.In a statement, Labor Secretary Eugene Scalia said the action "will help Americans saving for retirement gain access to alternative investments that often provide strong...

'Bored' Millennial Day Traders Boost Airline ETF's Assets 2,930%

(Bloomberg) -- A once-obscure ETF tracking airlines soared past $1 billion, largely bolstered by day trading.The US Global Jets exchange-traded fund, ticker JETS, posted its 64th consecutive day of inflows on Tuesday, according to data compiled by Bloomberg. Its growth has been staggering: The ETF held

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: US