Six percent eh? That’s damn expensive money – something like 30 times the official “overnight” rate to borrow. In addition he got warrants to buy 700 million shares at $7.14 each, which are (at this writing) about 75 cents each in the money. Oh, and there’s no lock-up period on those either.
Can I ask an inconvenient question on the latter? 447 million shares have traded hands on BAC this morning thus far. Were any of them shorted against the box by Berkshire, given that there are no apparent restrictions on his disposition of those warrants?
http://www.fedupusa.org/2011/08/wheres-the-retraction-pumpers-bank-of-america/
Comments