Buffett's Berkshire seeks Fed leeway to boost BofA bet - Fed
By Pete Schroeder and Bharath ManjeshR (Reuters) - Warren Buffett's Berkshire Hathaway Inc is seeking permission from the Federal Reserve to boost its stake in Bank of America Corp above the 10% level, according to an application document provided by the Fed on Tuesday. Bloomberg first reported the application on Tuesday.
By Pete Schroeder and Bharath ManjeshR
(Reuters) - Warren Buffett's Berkshire Hathaway Inc
Bloomberg first reported the application on Tuesday. Shares of BofA gained 3% after the report came out, dipping slightly to close at 2.02%.
Berkshire, which has a 9.96% stake in BofA, filed an application with the Fed this month, assuring the regulator that it will passively invest in the bank and will not try to force a change in strategy or corporate structure.
"Berkshire routinely assesses market conditions and may decide to purchase additional shares of common stock of Bank of America based on its evaluation of the investment opportunity presented by such purchases," the application reads.
"Berkshire anticipates that any such purchases would be on the open market at prevailing market prices."
Ownership above the 10% level attracts increased regulatory scrutiny and the Federal Reserve only allows investors to take double-digit stakes on the assurance the buyer would not try to force a controlling influence.
Berkshire's biggest stock market commitment remains in financial services. It is already the largest shareholder in BofA as well as American Express Co
In 2017, Berkshire pulled https://reut.rs/2MIl8cn a similar application to boost its Wells Fargo stake after the bank was beset by a scandal over its creation of unauthorised customer accounts.
Bank of America is slated to report its third-quarter results on Wednesday.
(Reporting by Manjesh Bharath in Bengaluru and Pete Schroeder; Editing by Shinjini Ganguli, Michelle Price and Tom Brown)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.