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Goldman To Repay Berkshire $5.65B

Goldman Sachs will repurchase preferred stock worth $5.65 billion that it sold to Warren Buffett’s Berkshire Hathaway in 2008.

Goldman Sachs will repurchase preferred stock worth $5.65 billion that it sold to Warren Buffett’s Berkshire Hathaway in 2008, Bloomberg reports. The deal includes a 10% premium on Buffett’s original $5 billion investment, a $125 million first-quarter dividend and $24 million in accelerated dividends.

The move will reduce the bank’s first-quarter earnings per share by $2.84. Goldman was seeking the Federal Reserve’s permission to buy back Buffett’s investment, which gave him $500 million a year in dividends. The Fed also gave the bank approval to repurchase company stock and increase the common stock dividend.

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