The U.S. Treasury Department played no role in Berkshire Hathaway’s $5 billion investment in Bank of America, sources say.Neither did President Obama.
The President spoke with Berkshire Hathaway CEO Warren Buffett on Monday about the economy, but they did not discuss Bank of America.
Speculation had been building all week that the bank would need some sort of assistance from Treasury if the company’s stock price continued falling.
On Monday shares in the bank hit lows of $6.01, a level not seen since the end of the financial crisis in 2009.
During the financial crisis, Treasury took major steps to shore up bank balance sheets—including pushing for mergers and acquisitions, and emergency lending through TARP.
The sources confirm Buffett’s statements about the deal. He said today that he dreamed about investing in Bank of America while in a bathtub yesterday morning.