Goldman may repay $5bn Buffett stake

Goldman Sachs could repay a $5bn preferred stock investment from Warren Buffett's Berkshire Hathaway, which helped the bank negotiate through the 2008 financial crisis.

The Wall Street Journal reports Goldman has the option of paying $5.5bn to redeem the shares, although this would trigger a $1.6bn charge and will also need Federal Reserve approval. Berkshire's Goldman investment in September 2008 reassured investors and allowed the investment banking giant to raise another $5bn the following day. Annual dividends of 10% on Berkshire's preferred Goldman Sachs shares have cost the investment bank about $1bn so far. Goldman is considering using some of its $173bn in 'excess liquidity' to repay Berkshire, the WSJ says. Should Goldman repay the Berksh...