Follow the money.
“In exchange for the Buffett brand name and $5 billion, the Charlotte, N.C. financial institution granted Warren Buffett the option to buy up to 700 million of its shares any time in the next 10 years for $7.14. Yesterday those warrants would’ve reaped the Omaha investor a nine-figure profit.”
http://money.cnn.com/2011/08/26/markets/warren_buffett_bofa_profit/index.htm
Now Moody’s action -
“Did last summer’s financial regulation bill work to end the too big to fail problem after all? By looking at the downgrade news out of Moody’s, you might think so. The firm has cut ratings of three major banks: Bank of America, Citigroup, and Wells Fargo. Although the particular downgrades differed by bank, Moody’s rationale was the same for all three: it sees a government rescue of these banks as a little bit less probable. “
....
“So the decision was in large part due to the simple fact that Moody’s doesn’t see the U.S. on the brink of financial crisis any longer. As a result, if one of these firms were to fail, then the government is probably in a better position to let that happen.”
http://www.theatlantic.com/business/archive/2011/09/whats-behind-the-bank-of-america-citi-and-wells-fargo-downgrades/245504/
Got to keep the WH to get his money out.
Got to keep the WH to get his money out.
No fool like an old fool.