Goldman Sachs is looking to repay the $5 billion Warren Buffett invested in the company in September of 2008, according to The Wall Street Journal. “Goldman has the option to redeem the preferred shares held by Berkshire for $5.5 billion, though the move would trigger a charge of $1.6 billion and require approval by the Federal Reserve,” The Journal said.
Goldman currently pays 10-percent annual dividends on Buffett’s massive investment, which The Journal helpfully works out to $15 a second — illustrating that although Warren Buffett is as folksy as a Nebraska cornhusker, he’s also as shrewd a dealmaker as any fast-talking Wall Streeter. In the current low-interest-rate environment, Goldman could cheaply raise the money to pay Buffett back.
Plus, once the $5 billion Buffet loan is paid back, senior management and their spouses will be free to cash in more than 10 percent of their Goldman shares.
mtaylor [at] observer.com | @mbrookstaylor