Thus it could ultimately hold 9 of the capital

Goldman Sachs employs big means. Three days after formalized its intention to change status, the Wall Street investment bank announced yesterday raised $ 10 billion. It brought us Billionaire Warren Buffett for $ 5 billion capital and in the wake for a capital increase to lift other of $ 5 billion double what she expected. Shock treatment for the "bulge bracket" which was until then the better withstood the crisis, but whose market capitalization has lost 40 over a year.

The action progress

In an operation which it has provided the only investment, Goldman Sachs sold 40,65 million shares to 123 $ unit, a 1.6 haircut on the Tuesday closing price. The Bank, which gave few details of the operation, can emit 6.1 million additional shares. A first for it since its IPO in 1999.

At the same time, the holding company of Warren Buffett, Berkshire Hathaway, will acquire preferred shares of Goldman Sachs giving access to a dividend of 10 and receive ("warrants") options to buy 5 billion shares at any time in the next five years to 115 dollars per share. Thus, it could ultimately hold 9 of the capital. The title of the Bank, which had ended in 125,05 $ Tuesday evening, 3.54, still earned 3.5 session yesterday, over $ 130.

The participation of Warren Buffett, who has already invested $ 25 billion this year, was widely hailed by the financial community. "The recovery is very good and with what is getting the Government to unfreeze markets for debt, it is the best time to buy", has shunned a Manager yesterday. "It is a vote of confidence on a silver platter," considered an another Manager quoted by Reuters. Cannot do much better than that!

For Goldman Sachs, this fresh money input is welcome while the Bank just to change status to access better refinancing conditions. The CEO of Goldman Sachs, Lloyd Blankfein, also estimated that this investment would "strengthen our capital and our liquidity positions".

"Warren Buffett investment should cut short in the discussion of the capitalization and liquidity of Goldman Sachs situation", said yesterday the Sanford Bernstein analyst Brad Hintz. Goldman also left the opportunity to redeem the preferred shares owned by the billionaire at any time with a 10 bonus.

Prestigious brand

Had he stayed out of the industry of the Bank of investment since 1997, Warren Buffett found Goldman Sachs its criteria of choice: a very prestigious brand, and respected leaders. "There is no more beautiful institution that Goldman Wall Street", he said on CNBC. The company is "extremely well managed". He is the Bank for making appeal to its consulting services, in particular those banker Byron Trott, did not hesitate to publicly compliment in the past. Byron Trott "includes better Berkshire than any which bankers of cases with which we are discussing and it hurt to say he deserves its committees", he wrote in the annual report of its holding in 2003. He is in no less criticized severely the investment bank industry, believing that she was going "where was the money, without concern for the consequences."