Buffett's Berkshire seeks Fed leeway to boost BofA bet: Bloomberg

News October 16, 2019 No Comments

Buffett's Berkshire seeks Fed leeway to boost BofA bet: Bloomberg

REUTERS: Warren Buffett’s Berkshire Hathaway Inc is seeking permission from the Federal Reserve to boost its stake in Bank of America Corp above the 10per cent level, Bloomberg reported on Tuesday.

Shares of BofA were up 3per cent after the report came out.

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Berkshire, which has a 9.96per cent stake in BofA, filed an application with the Fed in recent weeks making a variety of assurances that it will passively invest in the bank, the report said https://bloom.bg/2ISBQEW citing a copy of the application provided by the regulator.

Ownership above the 10per cent level attracts increased regulatory scrutiny and the Federal Reserve only allows investors to take double-digit stakes on the assurance the buyer would not try to force a controlling influence.

Berkshire’s biggest stock market commitment remains in financial services – it is the largest shareholder in American Express Co , Bank of America Corp and Wells Fargo and has a significant stake in JPMorgan Chase & Co .

In 2017, Berkshire pulled https://reut.rs/2MIl8cn a similar application to boost its stake in Wells Fargo after the bank was beset by a scandal over its creation of unauthorized customer accounts.

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Bank of America is slated to report its third-quarter results on Wednesday.

(Reporting by Bharath Manjesh in Bengaluru; Editing by Shinjini Ganguli)

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