This is the SECOND move by Obama that has some questioning the profits possibly gained by Warren Buffett through Obama’s actions.
From The Blaze:
BUFFETT STANDS TO PROFIT HANDSOMELY FROM MORTGAGE ABUSE SETTLEMENT
By Becket Adams
February 10, 2012
It appears that billionaire Warren Buffett will again profit from a major decision made by the White House.
“Warren Buffett’s stake in Bank of America Corp. increased in value by $154 million after President Obama and the U.S. Justice Department announced a $25 billion foreclosure abuse settlement with the five largest U.S. banks Thursday,” Patrick Howley of The Washington Free Beacon writes.
How did Buffet manage that?
Well, as it turns out, the man who has both publicly and repeatedly begged to have his taxes raised invested $5 billion in Bank of America (BofA) on Aug. 25, 2011.
“As part of his investment deal, Buffett gained warrants that allow him to buy 700 million shares of Bank of America stock at a strike price of $7.14 a share,” Howley writes.
However, on Dec. 19, 2011, it was reported that Buffett was $1.5 billion in the hole on his stock warrant because shares of BofA were trading at $4.94. But all that changed when President Obama announced the details of the $25 billion dollar settlement. After the White House explained the settlement Thursday morning, BofA stock closed at $8.13 a share.
The stock opened Friday morning at $8.31 and reached as high as $8.35 a share.
“If Buffett had exercised his warrants Friday morning, he would have made $847 million. $154 million of that profit would have been related to the foreclosure deal,” Howley reports.
And as mentioned in the above, this isn’t the first time a decision by the White House has paid off for the Berkshire Hathaway CEO.
Recall that in November 2011, it was reported that President Obama’s two-year postponement of the deadline to determine the future of the proposed Keystone XL pipeline would “force North Dakota oil producers to rely more heavily on the Burlington Northern Santa Fe Railroad.”
“Warren Buffett’s Burlington Northern Santa Fe LLC is among U.S. and Canadian railroads that stand to benefit from the Obama administration’s decision to reject TransCanada Corp.’s Keystone XL oil pipeline permit,” Bloomberg reported earlier this year.
Buffett’s Berkshire Hathaway Inc. holding company purchased the Burlington Northern Santa Fe Railroad Corp. in a total package worth $44 billion in 2009.
“Whatever people bring to us, we’re ready to haul,” Krista York-Wooley, a spokeswoman for Burlington Northern, a unit of Buffett’s Omaha, Nebraska-based Berkshire Hathaway Inc., said.
If Keystone XL “doesn’t happen, we’re here to haul.”
And let’s not forget that, as mentioned earlier on The Blaze, the billionaire philanthropist and market speculator has also been accused of using an “informational advantage” to make bets and investments on the market.
The man who once said, “Through the tax code, there has been class warfare waged, and my class has won,” might have been investing in the markets with information that only he and a handful of politicians had been given access to.
Ordinarily, this is called “insider trading” and it’s extremely illegal. Well, it is unless you’re a member of Congress — or perhaps extremely cozy with high ranking members of the administration.
Now, to be fair, perhaps Buffett’s good fortune at the hands of the mortgage abuse settlement is the result of keen investments and good luck. But then again, this is the second time in less than a month that he stands to make an impressive amount of cash because of something the White House did.
**Written by Beckett Adams***
Emphasis added for focal points.
YET, Communist/Leftist Van Jones writes that it still is the EVIL, CAPITALIST Banks and Wall Street that are to blame for the economic collapse. Yep, no blame to the Democrat Party through deregulation and defending the practices of Fannie Mae and Freddie Mac were part of the problem.
Does Van Jones realize that Obama has positioned himself in his Oligarchical Politburo (the White House) to utilize as many $$$ of EVIL CAPITALIST money for his re-election?
Van Jones’ post at Portside, the Committees of Correspondence for Democracy and Socialism news site:
By Van Jones
February 10, 2012
This week a $25 billion settlement was announced in
which big banks pay up for a portion of their bad deeds
in the home foreclosure crisis. Everyone is trying to
determine whether this is a good deal or a bad deal.
Here is how I score it. This deal represents small
progress on a small problem. Now it’s time to make big
progress on the big problem.
Don’t count on finding many good points in the deal
itself, because there aren’t a lot. In fact, the main
win can be found in what’s NOT in the deal.
A truly horrible deal would have let the banks write a
small check and then seal the door on all further
investigations and pursuits of accountability. This deal
does NOT do that. Because this settlement limits legal
immunity for banks, this deal does not automatically let
the banks off the hook for all of their wrong-doing.
Except for a few issues like robo-signing, state
attorneys general can still fight for more compensation
and relief for the banks’ victims. Government officials
can proceed with investigating and prosecuting banks for
their role in crashing the economy and the housing
market. In other words, the door is still open to solve
the much bigger problems we face. Our fight for justice
can, and will, continue.
That is small comfort, perhaps, but it was hard won. So
we should honor the hard work of New York State Attorney
General Eric Schneiderman, California Attorney General
Kamala Harris and others, including many grassroots
progressive organizations like New Bottom Line. They
fought courageously to prevent a total sweetheart deal
for the banks. This outcome is the result of determined
activism, and without this heroic effort, the deal would
have been drastically worse.
That said, there is a reason why many progressives and
housing advocates are furious, and why many struggling
homeowners are left wondering, “How does this help me?”
Here are three things that must happen next:
1) The U.S. Department of Justice and state attorneys
general must investigate and prosecute banks more
aggressively than ever, at a much larger scale than
anything that has happened to date.
2) We must force banks to make massive principal
reduction of hundreds of billions of dollars, to
immediately relieve the 14 million homeowners in the
country who have underwater mortgages.
3) We must change laws and regulations to prevent this
kind of crisis and fraud from ever happening again.
Two weeks ago, I called for hundreds of billions in
principal reduction for homeowners. This would free up
Americans to start new businesses, spend money on
worthwhile products and services, and invest in their
children’s futures. We still need to address the $700
billion in negative equity, which in turn is only part
of the nearly seven trillion dollars in total lost
equity created by the banks’ irresponsible, and in some
cases, illegal practices.
Maybe Van Jones should STEP BACK and look at the overall picture of what Obama is doing at the White House.
1. Obama vehemently against Citizens United. Now FOR IT. Obama has to fill his coffers for his run for re-election.
2. George Soros, the FED and IMF manipulating money on the markets. Still would like an answer as to WHO shorted the Euro just before it had its recent serious downturn.
3. Warren Buffett stands to profit if Berkshire Hathaway, through Burlington Northern Santa Fe railroads, gains hauling $$$ from Obama’s rejection of the Keystone Pipeline. In addition Buffett may stand to profit handsomely from Obama’s decision in the bank settlement.
America needs to wake up!
It is NOT about you; the citizens of America.
It is ALL about Obama’s re-election and his friends in high places.
Could the BLUE COLLAR Workers get behind Rick Santorum?
**Watch the entire video (Full speech)**…..”The working poor to rise in America”……
“When government gives you rights, the government can take away those rights”…..”Government will own you”….