Spurred on by the positive reaction to a
$5 billion investment from Warren Buffett's Berkshire Hathaway Inc., newly minted commercial bank Goldman Sachs Group Inc. is doubling the amount it plans to raise from a stock offering from $2.5 billion to $5 billion.
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Multiple sources
have told Bloomberg
that Goldman Sachs plans to double the size of its stock offering to $5
billion, as the firm is moving quickly to shore up the market's
confidence in itself. Announced after the market close on Tuesday, the
stock offering comes along with a capital injection from Buffett, who
will receive preferred shares and warrants for another $5 billion. The
news sent the stock soaring in after-market trading, with buyers
continuing to pile in Wednesday morning. Shares of Goldman were at $131.50
at 8:40 a.m. EST, after closing at $125.05 on Tuesday.
- George White
See Bloomberg story
See Dealscape post on Buffett investment
See Crisis on Wall Street Dealwatch
Comments
Doesn't anyone think that Goldman's public offering is timed suspiciously? Buoyed by its former CEO's appeals for taxpayer money to solve a liquidity crisis, Goldman is suddenly being infused with a huge equity stake? Sheesh. This whole "crisis" is getting smellier every day.