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In Low Places...

Warren Buffett’s Net Worth Jumps $154M Thanks to Mortgage Settlement

Warren Buffett’s stake in Bank of America Corp. increased in value by $154 million after President Obama and the U.S. Justice Department announced a $25 billion foreclosure abuse settlement with the five largest U.S. banks Thursday, records show.

Buffett invested $5 billion in Bank of America (BofA) on Aug. 25, 2011. As part of his investment deal, Buffett gained warrants that allow him to buy 700 million shares of Bank of America stock at a strike price of $7.14 a share. However, on Dec. 19, 2011, it was reported that Buffett was $1.5 billion underwater on his stock warrants, with shares of BofA stock trading at $4.94. But on Thursday, after President Obama personally announced the details of the settlement, BofA stock closed at $8.13 a share. The stock opened Friday morning at $8.31 and reached as high as $8.35 a share.

But this isn't the start of the good luck that Warren has enjoyed by "anticipating" the Obama administrations policy moves.

In November 2011, it was reported that President Obama’s two-year postponement of the deadline to determine the future of the proposed Keystone XL pipeline would force North Dakota oil producers to rely more heavily on the Burlington Northern Santa Fe Railroad. Buffett’s Berkshire Hathaway Inc. holding company purchased the Burlington Northern Santa Fe Railroad Corp. in a total package worth $44 billion in 2009.

Just a reminder:

Buffett has personally contributed $5,000 to Obama this election cycle, while Berkshire Hathaway has contributed $30,800 to the Democratic National Committee. This summer, Obama will accept the Democratic Party’s 2012 presidential nomination with a speech at Bank of America Stadium in Charlotte, N.C.

And for another fine example of crony capitalism: Obama Bundler Earmarked Stimulus Money for Donors:

A top campaign contributor to former Rep. Ron Klein (D-Fla.)—the Obama bundler who once registered, then deregistered, and now “never” registered as a lobbyist for Spirit Airlines—won stimulus grants and contracts worth nearly $18.5 million, White House records show. Florida Turbine Technologies (FTT), an engineering and development firm headquartered in Klein’s district, received a total of $18,459,277 in federal funding as part of the 2009 stimulus package, which Klein supported.

The Jupiter, Fla., company and its top executives were major contributors to Klein’s campaign during his two terms in Congress from 2007 to 2011, according to a database maintained by the Center for Responsive Politics. CEO Shirley Coates Brostmeyer and her husband Joe Brostmeyer, the company’s president, gave a combined $14,200 to Klein’s campaign while he was in office. The FTT political action committee added another $15,000.

Given how much business a little campaign contribution can generate, it would be a miracle if any business refrained.  The problem is not businessmen seeking favors, the problem is the politicians have too much money, and too many favors to give away.



That's the spirit, girls!