Berkshire Asks to Expand Its Bank of America Stake
Warren Buffett’s Berkshire Hathaway Inc. requested permission earlier this month from the Federal Reserve to increase its stake in Bank of America Corp. above 10 percent.
Berkshire typically tries not to own more than 10% of a bank to avoid additional Fed oversight. But the Omaha, Neb., conglomerate’s holdings grew to slightly more than 10% in July after the bank repurchased shares.
The application underscores Mr. Buffett’s positive outlook on Bank of America and on the U.S. banking sector more broadly. Berkshire held nearly $100 billion in financial-services stocks as of June 30, and six of its 10 top stockholdings were financial companies.
Reported by WSJ