Buffett's Berkshire seeks Fed leeway to boost BofA bet: Bloomberg

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© Reuters. Berkshire Hathaway Chairman Warren Buffett walks through the exhibit hall as shareholders gather to hear from the billionaire investor at Berkshire Hathaway Inc's annual shareholder meeting in Omaha© Reuters. Berkshire Hathaway Chairman Warren Buffett walks through the exhibit hall as shareholders gather to hear from the billionaire investor at Berkshire Hathaway Inc’s annual shareholder meeting in Omaha

(Reuters) – Warren Buffett’s Berkshire Hathaway (NYSE:) Inc is seeking permission from the Federal Reserve to boost its stake in Bank of America Corp (NYSE:) above the 10% level, Bloomberg reported on Tuesday.

Shares of BofA were up 3% after the report came out.

Berkshire, which has a 9.96% stake in BofA, filed an application with the Fed in recent weeks making a variety of assurances that it will passively invest in the bank, the report said https://bloom.bg/2ISBQEW citing a copy of the application provided by the regulator.

Ownership above the 10% level attracts increased regulatory scrutiny and the Federal Reserve only allows investors to take double-digit stakes on the assurance the buyer would not try to force a controlling influence.

Berkshire’s biggest stock market commitment remains in financial services — it is the largest shareholder in American Express Co (NYSE:), Bank of America Corp and Wells Fargo (NYSE:) and has a significant stake in JPMorgan Chase & Co (NYSE:).

In 2017, Berkshire pulled https://reut.rs/2MIl8cn a similar application to boost its stake in Wells Fargo after the bank was beset by a scandal over its creation of unauthorized customer accounts.

Bank of America is slated to report its third-quarter results on Wednesday.

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