Buffett's Goldman Investment Is Locked In

Goldman has indicated its desire to pay back the government as soon as possible. As its share price has more than doubled off last year's lows, speculation about an equity offering has been rampant.

Institutions that have government money have been subjected to intense public scrutiny, particularly over issues such as executive compensation. Furor over bonuses paid to executives as AIG (AIG), which has received more than $70 billion, has been especially intense, but other large companies such as Morgan Stanley (MS), Citigroup (C) and Bank of America (BAC) have also caught plenty of flack from Congress and the public.

Bove doesn't believe any company should be paying off any investors until it is certain that the crisis is over, but he also adds, "You shouldn't be diluting existing shareholders to pay off TARP so you can pay management more money."

Also over the weekend, Bove initiated coverage of JPMorgan Chase (JPM) and Wells Fargo (WFC) at Rochdale, where he moved earlier this year. He put a buy on both banks.

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