Author's Note and Update: The original version of this article stated that NY AG Eric Schneiderman opposed (and was pressured by the Obama administration to accept) a multi-state settlement regarding mortgage servicing practices on the specific grounds that it would release financial institutions from criminal liability.
This was an inference drawing on various sources reporting on the matter, but in hindsight, was unjustifiably specific ("broad liability" would have been a more fitting inference). I've amended or removed mentions of criminal liability and/or immunity from paragraphs 7,8, and 10 as, at the time, it was unfair to the parties criticized in the article. In February 2012, AG.NY.GOV detailed the "critical legal claims Attorney General Schneiderman fought to retain in a settlement," among them, "criminal claims."
NEW YORK (
) -- Is Warren Buffett banking on another round of bailouts?
Perhaps. But, if so, the next time banks get government help won't go down like it did last time.
, paying $5 billion for 50,000 cumulative preferred shares, each with a liquidation value of $100,000.
This investment has already raised red flags in the investment community, with the announcement coming days after
. Also, the terms of the deal -- specifically the outsized dividend -- have led at least one prominent analyst to declare: "
So what exactly are
Bank of America
and Warren Buffett up to?
They're betting against New York Attorney General Eric Schneiderman.
; opposing any mortgage/foreclosure settlement that gives banks immunity from further investigations.
In this sense, he's a lone wolf,
The proposed settlement of $20 billion would protect mortgage servicers such Bank of America,
from further mortgage investigations. For perspective, the proposed
But, for now, Schneiderman is the thorn in everyone's side, posing a threat to Buffett's investments,
If you care to drop him words of encouragement, you can
use this online form
If you wish to send Buffett a note, you might have trouble reaching him --
-- Written by John DeFeo in New York City
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.