August 25, 2011 journal, Warren Buffett big stock purchase in BankAmerica is fool folly. How you might stop the low bid price? By buying large blocks of it then quickly sellingit. Buffett said BankAmerica is doing all to help their customers, he is either lying or fooled. BankAmerica is going all-out to set their customers into the street onto their feet all over. Behind all that money and goodness Buffet has a heart of black gold full of selfish greed. He may have just invested his $5 billion in a quagmire that will take him down with BoA. The banks all have a lot of trade secrets that are about to be revealed out of their power. Most of their mortgages from the last 10 years are sold off in stocks shares & they cannot prove who owns the mortgage, therefore they cannot legally foreclose on it but they try to get by in doing it anyway using bogus signers. Most people would be put under the jail and it is to for doing it but not the banks because you see the banks have immunity from prosecution like the CheneyBush gang the insiders have run this country long enough, time to change. By Avi Salzman-"Talk about being greedy (or maybe just opportunistic) when others are fearful! Warren Buffett's Berkshire Hathaway (BRKB) will buy $5 billion worth of Bank of America's (BAC) preferred shares, or 50,000 shares at $100,000 each. The shares pay a 6% dividend. The bank can buy the shares back at any time at a 5% premium. BAC shares jumped 20% to $8.38 in pre-open trading. Buffett will also get warrants to buy common stock, the bank's release says: "In conjunction with this agreement, Berkshire Hathaway will also receive warrants to purchase 700,000,000 shares of Bank of America common stock at an exercise price of $7.142857 per share. The warrants may be exercised in whole or in part at any time, and from time to time, during the 10-year period following the closing date of the transaction. The aggregate purchase price to be received by Bank of America for the preferred stock and warrants is $5 billion in cash." CEO Brian Moynihan has denied for weeks that the bank needed more capital. By taking Buffett's cash, he appears to be backtracking. However, Moynihan spun it more as a p.r. move than an attempt to bolster the bank's balance sheet. "I remain confident that we have the capital and liquidity we need to run our business. At the same time, I also recognize that a large investment by Warren Buffett is a strong endorsement in our vision and our strategy," he said in the statement. To that end, Buffett even penned a love letter to Moynihan as part of the release. "Bank of America is a strong, well-led company, and I called Brian to tell him I wanted to invest in it," he said. "I am impressed with the profit-generating abilities of this franchise, and that they are acting aggressively to put their challenges behind them. Bank of America is focused on their customers and on serving them well. That's what customers want, and that's the company's strategy."