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Did Obama Ask Warren Buffett to Bailout Bank of America?

By: Brad Jackson (Diary)  |  August 26th, 2011 at 10:09 AM  | 

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On today’s edition of Coffee and Markets, Brad Jackson and Ben Domenech are joined by Francis Cianfrocca to discuss Hurricane Irene, Warren Buffett’s mysteriously timed investment in Bank of America and the Fed meeting in Jackson Hole, Wyoming.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

Related Links:

Track Hurricane Irene on Stormpulse
Berkshire Hathaway Invests $5 Billion in Bank of America
Obama talks to corporate titans on economy
Buffett to Host Obama Fundraiser in New York
Economic Growth Slows to Crawl, GDP Increase at 1%
What Do Markets Expect From Jackson Hole?

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  • gawken

    Does a bear s*** in the woods?

    Any more questions?

  • http://www.usdebateboard.com usdebateboard

    NTTAWWT.

    But it it changes things, doesn’t it? Warren Bluffer is no longer a benevolent rich guy sympatihetic to Obama’s meme that rich guys should pay more taxes. He’s just another supersized cog in Obama’s wheel of corporate cronyism.

  • Spartan4Life

    Obama has a call with Buffett on Wednesday.

    Buffett gets a sweetheart deal on Thursday(don’t forget DOTD, he didn’t buy common stock he got “preferred”).

    On Friday, Buffett announces he’ll host a fundraiser for Obama.

    Folks, this is institutionalized corruption. We have never had a president who is so tied into Wall Street bankers. We ought to put them both in jail, not sing their praises. Buffett is a crook.

    • http://exm.nr/mSvNyd Michael Francis

      I thought the exact same thing yesterday. It stinks.

  • exitsfunnel

    Great podcast as always guys but I have a quick question for Francis (or anyone else really). How would a large common equity purchase help the BOA balance sheet? Are you just talking about the price affect that the purchase would have on any of their own stock that the institution happens to hold or is there some other mechanism?

    Thanks.

    • Darin_H

      He bought preferred shares, and I’m guessing (since I am not looking it up right now) he’s buying them directly from BofA.

      • exitsfunnel

        but Francis’ contention was that if instead of purchasing these preferred shares, he’d have instead bought common equity shares, that this would have helped the BOA balance sheet. That’s the piece that I don’t understand. I don’t understand the mechanism by which purchasing common shares, affects BOAs capital assets.

        • Tbone

          on the balance sheet.

          • exitsfunnel

            and if it is, it explains why the preferred share purchase *doesn’t* help the BOA balance sheet, but it doesn’t explain how purchasing common shares would have helped the balance sheet.

          • Tbone

            the company, it would have been listed as paid in capital.

  • doncorleone

    In the belief systems of all of the socio/poli/economic “isms” that eminate from the left, is competition. Buffet “got” his, tax the hell out of everyone so they can’t get to his level. Just like the soviet union and all of the other communist/socialist countries and their “leaderhip”. All of the cream stays at the top, everyone else gets the rest to spread around.

  • reaganbuckley

    Though we kind of keep bailing them out with the Fed lending to them for next to no interest.

  • renny

    to 2001.

    Interesting how Obama and his crew know how to glom onto someone (and his business[es]) that don’t pay their taxes as examplars of financial expertise and tax recommendations like pigs’ finding mud.

  • greyeagle

    Paul Ryans plan does not take 716 billion out of Medicare and spend it on something else. There is NO IPAB, there are NOT 22 new taxes nor is there a mandate forcing religious entities to go against their conscious. This mandate also will sterilize girls young as 15 without parental consent. Do I need to go on?

  • Death_of_the_Donkey

    If you don’t want any more bailouts, then what we need is for private investors to step up and fill voids for capital. If it takes a call from someone in government to arrange said marriage (like what happened in 2008) then so be it (with the caveat that government isn’t promising an additional backstop). I would much rather have Barry call his buddy Warren about investing in BAC (Warren could easily say no) than have us the tax payers bail them out again.

  • streiff

    back on 8/16 I made you this offer
    http://www.redstate.com/erick/2011/08/15/hyperbloviating-think-progress-gets-its-collective-panties-in-a-wad-over-rick-perry/#comment-122628

    You have until 1pm Eastern to comply.

  • Death_of_the_Donkey

    I responded to all of your questions (with citations of where my data came from) upthread in direct response to the first people who questioned my facts, I assumed you would have read that, so I didn’t double post as a response to you. If you go back to that thread, you can clearly see my answers with documentation.

  • Aaron Gardner

    Which was the request.

  • doncorleone

    Look up or ask any anheuser busch employee how “helpful” he was to them, when in-bev hostily took over a-b..

  • Death_of_the_Donkey

    it is not like what I was citing was hard to find or obscure.

    For Texas Oil/Mining jobs: http://research.stlouisfed.org/fred2/series/TXNRMN?cid=27326

    For multiplier effects in general (since this is such a basic economic concept, I went to a basic source, but any macro 101 book will discuss this): http://tutor2u.net/economics/revision-notes/as-macro-multiplier-accelerator.html

    And in Texas in particular (although the source may be biased since it is the oil industry): http://www.foundationforenergyeducation.org/oil_and_gas_by_the_numbersjobs_taxes_and_royalties.php