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<p>[QUOTE=&quot;Cloudsweeper99, post: 1255444, member: 3011&quot;]Before I respond, I need a little information from you because your prior posts are completely confused.</p><p><br /></p><p>1. At first you were contending that BAC could never pay back their loans and was doomed.&nbsp; Now you contend that the warrants, the most risky security in the capital structure of a company, purchased at about at $1 premium to the stock price on date of issue, are a good deal.&nbsp; Which is it?&nbsp;&nbsp; </p><p><br /></p><p>2. Do you understand that Buffett took a reduction in the rate on the preferred in return for out of the money warrants?</p><p><br /></p><p>3. Do you understand that I believe Buffett made a reasonable investment in a well capitalized bank?</p><p><br /></p><p>4. Do you realize that nobody buys a package of preferred stock plus warrants if they think a company will enter bankruptcy during their holding period?[/QUOTE]</p><p><br /></p>

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