Regarding Warren Buffett's Berkshire Hathaway rescue of Bank of America from financial collapse, some people are upset because Berkshire received super dividends and special stock options that could make it the bank's biggest shareholder. But which would your prefer?
Having Berkshire or the taxpayers bailout B of A? Even though the bank already got one huge taxpayer bailout and is designated by the U.S. government as "too big to fail," investors were actively selling off its shares as the bank was sinking in its troubled real estate and in its other financial problems. Either way, it was going to get a bailout. I would rather it be from private investors led by Berkshire than from you and me as taxpayers.
But Warren Buffett will also do something else. Because it's Berkshire's money, he will make a concerted effort to hold B of A management accountable for their performance, something the U.S. government has been ineffective at doing.
Dick
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