SDB Evening News Reads for 082511: BOA, Under the Bridge and Irene

Evening Y’all!

Today’s evening reads is going to be on the short side, so please help me out by posting links in the comment section.

Bank of America got a Buffet Bailout of sorts today.  Buffett invests $5 billion in Bank of America, giving bank a vote of confidence; stock soars – The Washington Post

Warren Buffett is coming to the rescue of another fallen giant.

Buffett’s Berkshire Hathaway announced Thursday that it would invest $5 billion in Bank of America Corp., giving a much-needed vote of confidence in the struggling bank.

[…]

Buffett said in a statement Thursday he called Bank of America’s CEO Moynihan to ask about investing because he considered the bank a strong, well-led company.

Berkshire will receive a dividend of 6 percent on his investment in Bank of America. Berkshire will get 50,000 preferred shares and warrants to purchase 700 million shares of common stock at $7.14 per share. Buffett can exercise the warrants at any time in the next 10 years. If he does, it would make him the banks largest shareholder with a stake of 7 percent.

An hour after the deal was announced, Buffett had already made a profit on paper of $500 million on the stock warrants thanks to a surge in Bank of America’s stock price. After closing at $6.99 Wednesday, the stock jumped 87 cents or 12 percent to $7.86 Thursday. Bank of America’s stock traded as high as $15 in January, before its mortgage woes worsened.

Buffett’s investment in Bank of America sent the stocks of other banks higher too. Citigroup Inc. rose 2.7 percent and Morgan Stanley rose 3.4 percent.

Buffett’s BofA Stakes Net $1.4B on First Day – Bloomberg

Warren Buffett may have earned $1.4 billion in one day on his $5 billion investment in Bank of America Corp. (BAC)

[…]

“I’m sure Warren cut a pretty good deal,” said Linus Wilson, assistant professor of finance at the University of Louisiana at Lafayette. “For Bank of America, you get the endorsement of Warren Buffett, and it’s going to make it a lot easier if Bank of America wants to raise more capital from other investors.”

Didn’t Obama have a phone call with Buffet a few days ago? Buffet says he got the “idea” for the BOA deal while in the “bathtub.” I wonder if Buffet has a phone in that bathroom of his…Warren Buffett: I Dreamt Up Bank Of America Deal In The Bathtub

Warren Buffett is the third wealthiest man in the world. He also seems to like making market-shifting financial decisions while relaxing in the bath. On Thursday, Buffett, the billionaire investor and CEO of Berkshire Hathaway, announced his company would buy $5 billion worth of shares in Bank Of America. Critics wondered if Buffett had been pressured to help the troubled bank. Not so, Buffett says. “He says he just dreamt this idea up on Wednesday morning while he was in the bathtub,” CNBC’s Becky Quick said on Thursday after speaking with Buffett over the phone.

The deal is being compared to previous Buffett deals like the $5 billion Goldman Sachs investment during the financial crisis not only because of the risk attached, but also because of the prominence of an anecdotal bathtub story.  After the Goldman Sachs deal, Buffett compared the struggling economy to the tub with “cold water in the front and hot water in the back,” The New York Times points out.

I am avoiding the political yada yada yada today, but feel free to share anything you find interesting down below in the comments.

Okay, now for a quick injection of something funny , especially for an 80’s chick like me…have you all seen this latest ad from Geico:

That A-ha song was the soundtrack to my first year of high school. You just gotta love the Mr. Butter’s version.

Irene has turned a bit, bringing the track closer to NYC:  AccuWeather.com – Weather News | Irene: New York City, Mid-Atlantic Put on High Alert

Here are the 2pm warnings and watches, as well as advisories from NOAA:

Hurricane IRENE Public Advisory

BULLETIN
HURRICANE IRENE INTERMEDIATE ADVISORY NUMBER  21A
NWS NATIONAL HURRICANE CENTER MIAMI FL       AL092011
200 PM EDT THU AUG 25 2011

...EYE OF IRENE OVER ABACO ISLAND...

SUMMARY OF 200 PM EDT...1800 UTC...INFORMATION
----------------------------------------------
LOCATION...26.5N 77.2W
ABOUT 105 MI...170 KM N OF NASSAU
ABOUT 610 MI...980 KM S OF CAPE HATTERAS NORTH CAROLINA
MAXIMUM SUSTAINED WINDS...115 MPH...185 KM/H
PRESENT MOVEMENT...NNW OR 335 DEGREES AT 14 MPH...22 KM/H
MINIMUM CENTRAL PRESSURE...951 MB...28.08 INCHES

WATCHES AND WARNINGS
--------------------
CHANGES IN WATCHES AND WARNINGS WITH THIS ADVISORY...

NONE

SUMMARY OF WATCHES AND WARNINGS IN EFFECT...

A HURRICANE WARNING IS IN EFFECT FOR...
* THE CENTRAL AND NORTHWESTERN BAHAMAS

A HURRICANE WATCH IS IN EFFECT FOR...
* NORTH OF SURF CITY NORTH CAROLINA TO THE NORTH CAROLINA-VIRGINIA
BORDER INCLUDING THE PAMLICO...ALBEMARLE...AND CURRITUCK SOUNDS

A TROPICAL STORM WATCH IS IN EFFECT FOR...
* NORTH OF EDISTO BEACH SOUTH CAROLINA TO SURF CITY NORTH CAROLINA

A HURRICANE WATCH MEANS THAT HURRICANE CONDITIONS ARE POSSIBLE
WITHIN THE WATCH AREA.  A WATCH IS TYPICALLY ISSUED 48 HOURS
BEFORE THE ANTICIPATED FIRST OCCURRENCE OF TROPICAL-STORM-FORCE
WINDS...CONDITIONS THAT MAKE OUTSIDE PREPARATIONS DIFFICULT OR
DANGEROUS.

A TROPICAL STORM WATCH MEANS THAT TROPICAL STORM CONDITIONS ARE
POSSIBLE WITHIN THE WATCH AREA...GENERALLY WITHIN 48 HOURS.

WARNINGS WILL LIKELY BE REQUIRED FOR PORTIONS OF THE WATCH AREA
LATER TODAY.  THE HURRICANE WATCH WILL ALSO LIKELY NEED TO BE
EXTENDED NORTHWARD ALONG THE MID-ATLANTIC COAST LATER TODAY.
INTERESTS ELSEWHERE IN THE MID-ATLANTIC STATES AND NEW ENGLAND
SHOULD MONITOR THE PROGRESS OF IRENE.

FOR STORM INFORMATION SPECIFIC TO YOUR AREA IN THE UNITED
STATES...INCLUDING POSSIBLE INLAND WATCHES AND WARNINGS...PLEASE
MONITOR PRODUCTS ISSUED BY YOUR LOCAL NATIONAL WEATHER SERVICE
FORECAST OFFICE. FOR STORM INFORMATION SPECIFIC TO YOUR AREA OUTSIDE
THE UNITED STATES...PLEASE MONITOR PRODUCTS ISSUED BY YOUR NATIONAL
METEOROLOGICAL SERVICE.

DISCUSSION AND 48-HOUR OUTLOOK
------------------------------
AT 200 PM EDT...1800 UTC...THE CENTER OF HURRICANE IRENE WAS
LOCATED NEAR LATITUDE 26.5 NORTH...LONGITUDE 77.2 WEST. IRENE IS
MOVING TOWARD THE NORTH-NORTHWEST NEAR 14 MPH...22 KM/H.  THIS
MOTION IS EXPECTED TO CONTINUE THROUGH TONIGHT WITH A TURN TOWARD
THE NORTH BY EARLY FRIDAY.  ON THE FORECAST TRACK...THE CORE OF THE
HURRICANE WILL MOVE NORTH OF THE NORTHWESTERN BAHAMAS LATER
TODAY...AND PASS WELL OFFSHORE OF THE EAST COAST OF CENTRAL AND
NORTH FLORIDA TONIGHT AND EARLY FRIDAY.  THE HURRICANE IS FORECAST
TO APPROACH THE COAST OF NORTH CAROLINA ON SATURDAY.

MAXIMUM SUSTAINED WINDS ARE NEAR 115 MPH...185 KM/H...WITH HIGHER
GUSTS.  IRENE IS A CATEGORY THREE HURRICANE ON THE SAFFIR-SIMPSON
HURRICANE WIND SCALE.  SOME STRENGTHENING IS POSSIBLE TODAY AND
TONIGHT.

IRENE IS A LARGE TROPICAL CYCLONE.  HURRICANE FORCE WINDS EXTEND
OUTWARD UP TO 70 MILES...110 KM...FROM THE CENTER...AND TROPICAL
STORM FORCE WINDS EXTEND OUTWARD UP TO 290 MILES...465 KM.

THE LATEST MINIMUM CENTRAL PRESSURE REPORTED BY AN AIR FORCE RESERVE
HURRICANE HUNTER AIRCRAFT WAS 951 MB...28.08 INCHES.

I know that I keep repeating myself with warning you all about Irene, but you must realize, it was 19 years ago this week that Andrew hit South Florida and devastated much more than property and homes.  Anyway, for those in Irene’s path, please take it seriously.

Click here for the latest:  National Hurricane Center

Mark and Donnie Wahlburg are getting into the burger business:

Mark and Donnie Wahlberg to Open Restaurant Named ‘Wahlburgers’ — Vulture

It’s really all there in the headline, isn’t it? You know right now whether you’re in or you’re out. (For the record, we’re in.) Here’s the backstory: Successful Southie siblings Mark and Donnie Wahlberg have opened quite a few successful restaurants in Boston, and when they made plans to start a burger joint, there was really only one inevitable name it could have. Unfortunately, the Tom Wahl’s chain in Rochester, New York, was already selling something called a “Wahlburger,” so the brothers had to work out a full-spectrum deal with that chain in order to acquire the name for … okay, maybe that backstory isn’t so important. The point is, they got the name, and now Wahlburgers is opening in a 120–seat space at the Shipyard, and the chef will be Paul Wahlberg, their older brother. Perfect. Road trip! [Boston Herald]

Okay Boston Boomer, when this joint opens up…I want a review of what one of those Wahlburgers taste like.

That is it for me today, my son is playing his first Middle School football game this evening, and my daughter will be cheering him on.  It is also my anniversary today, nineteen years…

My first date with Dan was more like a triathlon. After spending the day at Clearwater Beach,  we had dinner of a cheeseburger, tator tots and an ice cream cone at The Old Meeting House. We walked all along Bayshore Blvd, watching the sun set and the sky turn from twilight to darkness…spotted with jewel colors of the sparkling lights of Downtown Tampa, we spent the evening talking. Then while at an all night sub shop, Dan said to me… “We are going to have beautiful children together…” At the time, I thought, damn…that is one smooth ass line! I guess it worked because we were married four months later, and I must admit, our children are beautiful.

So, just humor me while I put up the music video of our song…Under the Bridge by the Red Hot Chilli Peppers. It was released in March of 1992, and seemed to be always playing on the radio, on restaurant and mall sound systems, or playing over and over for hours on a jukebox in a Happy Mart just south of Ocala, FL…which we found ourselves trapped one night with my brother Denny, eating multiple batches of greasy crinkle french fries…trying to avoid a crazy dude wearing a cowboy hat with a roach clip of feathers clipped on the back of its rim, colorful dyed feathers that reached down his back and seemed to move in slow motion as he tried to talk to us about the end of the world.

Happy Anniversary Dan, I’ll met you later under the bridge, and we will share a laugh as we think back on these long nineteen years.

Have a good evening Sky Dancing readers, I’ll catch ya later in the comments!


11 Comments on “SDB Evening News Reads for 082511: BOA, Under the Bridge and Irene”

  1. Sara says:

    Has there been coverage about how high the storm surge will be since there will be high tides…coverage appears to be mentioning only the wind factor whereas the storm surge is more dangerous.

    • Branjor says:

      I just heard that the storm surge should be very high, via News12 New Jersey coverage – high tide is 8 AM Sunday, plus we have a new moon, which makes the tide even higher, plus the hurricane winds will be added to it, and that Barnegat Bay will join with the Atlantic Ocean in some places – if the storm continues on its current track.

  2. propertius says:

    Warren Buffett is coming to the rescue of another fallen giant.

    He’s also hosting a fundraiser for Obama, which would, I suppose, constitute coming to the rescue of a fallen dwarf.

  3. I like this Jack Cafferty rant: Why are Americans allergic to brains?

    http://www.manarewescrewed.com/?p=4183

    Of course I am ancient enough to admit remembering that so scandalous for the time Calvin Klein ad with the tag line: A hot body is just a warm place to keep your brains

    At least that is how I remember it. Somebody else had the hot body. I had the brains..

  4. Boo Radly says:

    Happy Anniversary MM/Dan!

  5. madamab says:

    Happy Anniversary Minkoff Minx and Hubby! What a great story. Clearly you were meant to be!

  6. Sara says:

    On top of ocean storm surge, weather predictions of fresh water flooding due to saturated ground…take care and make preparations.

  7. ralphb says:

    I found quite a good story about Iceland throwing off the yoke of the financiers and recovering quite nicely now at the Cheeto. Maybe this is why Iceland fell completely off the media map.

    http://www.dailykos.com/story/2011/08/01/1001662/-Icelands-On-going-Revolution

    Dak, do you have any information about Iceland since it went bankrupt in 2008? Could be there is an object lesson there for Greece and others who are being forced into austerity regimes?