Billionaire Warren Buffett has faith in the U.S. financial system and he's putting up some serious money to prove it.

Fresno, CA, USA While others are dumping their stock, Buffett is investing five-billion dollars in Goldman Sachs.

Goldman is selling that amount of preferred stock to Buffett's insurance and investment company, Berkshire Hathaway. It's a huge vote of confidence for one of the survivors of the credit crisis.

While Goldman is already well-capitalized, raising more cash will ease investors' concerns about its relatively high leverage ratio.

Investment banks use leverage, or borrowed money to boost returns.


-----------------------------------------------------------------------------------------------

abc30 News Links:
Links to other news sections on our website.

-----------------------------------------------------------------------------------------------

Breaking News Alerts:
Click Here to Sign-Up for Breaking News E-Mail Alerts
Receive Breaking News alerts in your email inbox.


Click Here to Sign-Up for Text Message Alerts
Receive Breaking News alerts right on your cell phone.


-----------------------------------------------------------------------------------------------
Copyright © 2021 KFSN-TV. All Rights Reserved.