BofA Reaches Deal With Buffett on Preferred Stake
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Bank of America Corp., the lender that turned to Warren Buffett in 2011 for a capital injection, reached a deal with the billionaire’s company to change terms so the investment is treated more favorably by regulators.
The amendment would allow the bank to count preferred shares with a $2.9 billion carrying value as Tier 1 capital, the Charlotte, North Carolina-based lender said in a filing with the U.S. Securities and Exchange Commission yesterday. The deal with Buffett’s Berkshire Hathaway Inc. must be approved by the bank’s shareholders in a May vote, according to the filing.