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Goldman Sachs to raise $5bn through Warren Buffett

Goldman Sachs is to raise $5bn through renowned investor Warren Buffet in order to shore up its position amidst the ongoing financial crisis.

Buffet, ranked by Forbes as the richest person in the world in February this year, is to buy $5bn (£2.7bn) of preferred stock from Goldman Sachs via his company Berkshire Hathaway in a private placing.

Goldman Sachs is also raising a minimum of $2.5bn through other investors in a public offering.

Lloyd Blankfein, chairman and chief executive of Goldman Sachs, says: “We are pleased that given our longstanding relationship Warren Buffett has decided to make such a significant investment in Goldman Sachs.

“We view it as a strong validation of our client franchise and future prospects.

“This investment will further bolster our strong capitalization and liquidity position.”

Warren Buffett, chairman and chief executive of Berkshire Hathaway, says: “Goldman Sachs is an exceptional institution. It has an unrivalled global franchise, a proven and deep management team and the intellectual and financial capital to continue its track record of outperformance.”

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