Investing Warren Buffett Watch

  Tuesday, 6 Sep 2011 | 7:15 AM ET

Party Celebrating Capitalism Has Ended: Fund Manager

Posted ByPatrick Allen
  Friday, 2 Sep 2011 | 10:34 AM ET

Bank of America Under Fed Scrutiny

Posted ByJohn Carney
Bank regulators from the Federal Reserve have been pushing Bank of America to put in place a plan for what to do if conditions worsen, according to The Wall Street Journal. »Read more
  Thursday, 1 Sep 2011 | 11:36 AM ET

Will Bank of America's Buffett Deal Backfire?

Posted ByJohn Carney
Pulitzer Prize winning journalist Jesse Eisinger raises an important point about Bank of America—and the banking system in general. »Read more
  Tuesday, 30 Aug 2011 | 4:54 PM ET

Does Warren Buffett Think the Government Would Rescue Bank of America?

Posted ByJohn Carney
A lot of people have wondered about the haste with which The World's Greatest Investor, Warren Buffett, decided to buy $5 billion of preferred equity and warrants from Bank of America. To hear the Oracle tell it, the idea came to him in the bathtub. Not too long later he was dictating terms to the bank. »Read more
  Tuesday, 30 Aug 2011 | 4:26 PM ET

Happy Birthday, Warren Buffett

Posted ByJohn Carney
Despite what many people seem to believe, Warren Buffett did not spring fully formed from the mind of Zeus. He, too, was born of woman and today the old guy celebrates his 81st birthday. »Read more
  Thursday, 25 Aug 2011 | 6:42 PM ET

Cramer on Buffett’s ‘Big Save’ of Bank of America

Posted ByMichelle Fox
Now that Warren Buffett has “saved” Bank of America, find out if Cramer thinks it’s a buy. »Read more
  Thursday, 25 Aug 2011 | 4:52 PM ET

Euphoria Over Buffett's $5 Billion BofA Investment Subsides

Posted ByDavid Faber
The euphoria that greeted Warren Buffett’s $5 billion investment in Bank of America Thursday has subsided as this day has worn on, but the boost in confidence brought on by having the world’s best known investor step into the weakest of the U.S. big banks is still being felt, if only modestly. »Read more
  Thursday, 25 Aug 2011 | 2:23 PM ET

Is Brian Moynihan's Credibility Hurt By Warren Buffett Deal?

Posted ByDrew Sandholm
The Bank of America CEO had protested the financial institution didn't need to raise capital, but then strikes a $5 billion deal with Warren Buffett a few weeks later, much to the ire of the "Fast Money" traders. »Read more
  Thursday, 25 Aug 2011 | 1:51 PM ET

Buffett Takes BofA Capital Increase Fears 'Off the Table': Shareholder

Posted By Christine Jenkins|Special to CNBC.com
After a $5 billion capital infusion in Bank of America by Warren Buffett, an analyst reiterated a “strong buy” on the company that was “being viewed as one of the weakest banks in the country, if not the world,” he said on CNBC on Thursday. »Read more
  Thursday, 25 Aug 2011 | 9:42 AM ET

Buffett Tells CNBC 'This Isn't 2008' As Bank of America Gets $5B Loan at Just 6%

Posted ByAlex Crippen
Warren Buffett
Getty Images
Warren Buffett

Warren Buffett tells CNBC's Becky Quick "this isn't 2008" and that's why Bank of America is getting better terms for its $5 billion loan today from Berkshire Hathaway, compared to what General Electric and Goldman Sachs paid for similar loans almost three years ago at the height of the credit crisis.

Bank of America shares jumped more than 9 percent to close at $7.65 in trading on Thursday.

Buffett is also stressing the investment was his idea, perhaps to downplay any fears that Bank of America is desperate for a cash infusion.

This morning, Bank of America announced that Berkshire will use cash to buy 50,000 shares of preferred stock with a liquidation value of $100,000 per share in a private offering.

That is, in effect, a loan to the bank, in which it will pay around $300 million in dividends each year to Berkshire. BofA can pay back that loan at any time, but it will have to make an additional 5 percent dividend payment to do so.

»Read more

About Buffett Watch

  • Warren Buffett is arguably America’s most-admired and most-followed investor. Buffett is the largest shareholder and CEO of Berkshire Hathaway and one of the world’s most famous and most generous philanthropists. Legions of investors - from all walks of life - follow Buffett's homespun investment philosophy: invest in what you know, invest in value. Here on CNBC.com's Warren Buffett Watch, we’ll keep you up to date on what the “Oracle of Omaha” is doing by following Buffett's trades, words and deeds.