Photograph from Chip Somodevilla/Getty Pictures
Warren Buffett’s Berkshire Hathaway,
which has been steadily raising its position in
Bank of America
(ticker BAC) lately, can hold up to 24.9% of those bank’s stock, as reported by a banking regulator.
Investors such as Berkshire are usually confined to some 10% stake in a bank. However, Berkshire requested and obtained consent from the Federal Reserve Bank of Richmond from April to discuss that threshold.
A spokesman in the Richmond Fed stated that Berkshire can go as large as 24.9%. That upper limit hasn’t been previously documented.
It usually means that Berkshire can keep on purchasing a good deal longer Bank of America stock if CEO Buffett chooses to do so.
Berkshire is currently the biggest shareholder of all Bank of America, using a 11.8% bet. Recently, Berkshire has additional $1.7 billion into its Bank of America holding, according to filings. That bet currently totals roughly $25 billion.
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