Goldman Sachs has handed over $5.5 billion to Warren Buffett, reimbursing him for a loan he made to the financial institution during the financial crisis, CNBC reports.
In 2008, Buffett bought $5 billion in Goldman preferred stock, and recently, the bank repaid that money plus a $500 million dividend Goldman had to tack on to buy back its shares.
The deal was basically a loan from Buffett to the bank, and its reimbursement ends a stream of dividends the Oracle of Omaha was collecting while holding onto the preferred stock.
"Berkshire had been getting a continuous stream of 10 percent annual dividends on the loan from Goldman," CNBC reports.
"That works out to $1,369,863 a day that won't be heading from New York to Omaha."
Goldman Sachs tells CNBC that "Berkshire Hathaway's September 2008 investment in Goldman Sachs was a major vote of confidence in our firm, and we are very appreciative of it."
Goldman Sachs is one of the few U.S. financial institutions that has held up well amid the financial crisis of the past few years.
The company called the housing collapse well before it happened and avoided the problems that plagued Merrill Lynch and other investment banks.
While the bank was accused of fraudulent trading activities by the Securities and Exchange Commission, it settled by paying $550 million last year, and today, the bank's shares are up 20 percent over the last two years, according to The New York Times.
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