Warren Buffett’s Investment in Bank of America

Steve Goldstein is spot on:

The much-maligned government plan did stabilize the financial system, even if taxpayers are still on the hook for up to $130 billion in losses, but private-sector bailouts are better for the public at large.

It’s how it should be: if a private-sector bank is under capitalized, it should find a private investor to provide it with additional cushion, at a hefty price if necessary. And that’s what happened Thursday, just a day after Buffett dreamed up the idea in his bath tub, if CNBC’s account is correct.

Here. The investment adds to the firm’s capital.

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