Posted on October 14, 2020 by iwano@_84
- Warren Buffett phoned Treasury Secretary Hank Paulson at the height of the 2008 financial crisis with a suggestion that likely saved the US economy from an even deeper recession.
- The famed investor and Berkshire Hathaway CEO proposed the government plow capital directly into banks instead of only buying their distressed assets.
- Paulson quickly gathered the bosses of the nation’s biggest banks and convinced them to accept billions of dollars in investment.
- The Treasury demanded preferred stock paying chunky dividends, as well as stock warrants in return, emulating Buffett’s bailout of Goldman Sachs in September 2008.
- Former President George W. Bush called it “probably the greatest financial bailout ever” and said it “probably saved a depression.”
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