Consumer spending ramping up amid coronavirus: Bank of America CEO
Bank of America Chairman and CEO Brian Moynihan discusses the second round of the Paycheck Protection Program as big banks face scrutiny for prioritizing loans, earnings, and reopening American business amid the coronavirus.
It appears Warren Buffett is becoming more enamored with Bank of America with the shares down over 30 percent this year.
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This week – Monday, Tuesday and Wednesday - his Berkshire Hathaway bought about 34 million common shares, according to a filing with the Securities and Exchange Commission. The buying increased from a little over 9 million shares on Tuesday to over 13 million on Wednesday for a price of about $24 per share.
The purchase lifted his stake to slightly over 11 percent, as tracked by Thomson One.
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During the Berkshire Hathaway meeting in May, which was virtual this year for the first time in history, Buffett did not speak of BofA specifically but did say the banking industry was in good shape to weather the pandemic.
"They’re well-capitalized for it. They were reserved building in the first quarter, and they may need to build more reserves. But they are not a primary worry of mine at all. We own a lot of banks. Or, we own a lot of bank stocks" he said according to transcripts.
BIDEN WIN 'BIGGEST RISK' TO BUFFETT'S NEW DEAL
The BofA buy follows Berkshire's $9.7 billion purchase of Dominion Energy's storage network earlier this month.
The deal was a fraction of the $125 billion in cash Berkshire held at the end of 2019, as disclosed in the latest Annual Report.
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BofA is the second-largest bank in the nation with over $1.8 trillion in assets as of 2019 and the majority of those holdings, over 94 percent, are domestic. The bank has 4,242 U.S. branches.
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|WFC||WELLS FARGO & COMPANY||26.35||+0.09||+0.34%|
WARREN BUFFETT DONATES $2.9B IN BERKSHIRE SHARES TO BILL AND MELINDA GATES FOUNDATION, OTHERS
Buffett also owns JPMorgan Chase which is the largest U.S. bank with over $2.3 trillion in assets. It has 4,982 U.S. branches.
And the third-largest bank Wells Fargo which has $1.7 trillion in assets and over 5,400 U.S. branches.
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