• September 23, 2008: Buffett's Berkshire invests $5B in Goldman
• September 28, 2008: Buffett to Congress: Bail out economy or face 'meltdown'
• September 29, 2008: Goldman, Merrill Collect Billions After Fed's AIG Bailout Loans
As much as $37 billion from federal bailout loans to American International Group Inc. has gone to investment banks including Goldman Sachs Group Inc., the firm Treasury Secretary Henry Paulson used to run...
...Without the government money, Goldman, Merrill Lynch & Co., Morgan Stanley, Deutsche Bank AG and other firms could have become some of the biggest creditors in a bankruptcy filing by AIG, the world's largest insurer, because of its billions in losses on subprime bonds and corporate debt.
• October 2, 2008: Buffett: $700 billion bailout may be too low
• October 2009: It's 12 months later and Warren Buffett's Berkshire Hathaway is $3 billion richer.
One year ago today, on September 23, 2008, with the financial world still reeling from the collapse of Lehman Brothers just days before, Buffett stunned Wall Street with a massive vote of confidence for Goldman Sachs..
Goldman agreed to pay Berkshire a 10 percent annual dividend on [Buffet's] preferred stock. That's $500 million a year, and the payout didn't depend at all on what happened to Goldman's common stock price... But there was more. In what Buffett later described as a "bonus," Goldman also gave Berkshire the right to buy $5 billion of common stock at $115 a share...
The bonus has turned into big bucks.
• November 2010: Warren Buffett Pens NYT Op-Ed Praising Administration During Economic Crisis
• November 2010: Report: Warren Buffett to Receive a Presidential Medal of Freedom from White House
Mmmm, yes, Democrats are for the little people. The working man. Right.
Kids, can you say "Crony Capitalism"?