Financial markets showed some signs of stabilizing Wednesday as investor Warren Buffett’s $5 billion bet on Goldman Sachs Group Inc. renewed confidence that U.S. financial firms will survive the credit crisis. Stock futures pointed to a higher opening, although the credit markets, waiting for further news on the government’s bank rescue package, were still restrained.
Buffett’s Berkshire Hathaway Inc. said Tuesday it was investing at least $5 billion in Goldman — a move Wall Street took as strong sign of support for the independent investment bank model.
Besides buying $5 billion in preferred stock, Berkshire also got warrants to buy another $5 billion in Goldman’s common stock. Goldman also said late Tuesday it would raise another $2.5 billion in its own public stock offering; the company and Morgan Stanley earlier this week were granted approval to become bank holding companies, which would help them strengthen their balance sheets.
damn!!!!! 5 billy!!! plus Buffet’s company is going to get another 5 bill to invest in Goldman’s common stock!!! damn!!!!!
Stocks pointed higher on Buffett-Goldman deal – Yahoo! News