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.
Click here for the story from Bloomberg.
Click here for additional coverage from Market Watch.