LIU: I like the (ph) joke.
BUFFETT: It would not make me unhappy - I'll leave that one out.
LIU: You tell me off-record. You can tell me off the camera.
BUFFETT: OK, OK.
LIU: And just, you know, finally, on Bank of America...
BUFFETT: Right.
LIU: ...Warren, you know, you keep putting that $5 billion preferred shares. You know, some have said when you put that in that Warren Buffett gets a deal like this, a six percent dividend on $5 billion preferred shares.
It's a deal that nobody else can get but Warren Buffett. It seems unfair to some.
BUFFETT: Well, in our deal, we have to hold it for five years. How many people want to buy Bank of America and say, we've got a special deal. And (ph) you know, do they want to sign up and say they won't sell their stocks for five years?
That's one factor. But a second factor is the preferreds of Bank of America, the day before we bought it, we're selling at nine or 10 percent yields.
So you could have gone out the day before we bought it - I don't know what they're at today but you could've gone out today and got a nine percent yield yourself.
You wouldn't have gotten the warrants. But our deal - I don't think anybody else would have come up with it.
LIU: Was this an investment in the bank or an investment in Brian Moynihan?
BUFFETT: Well, it's both. I mean, the bank has a wonderful underlying business. It's got lots of problems. Then the bet is Brian going to get rid of those problems?
And it won't take six months or a year. It will take much longer than that even. But the underlying business is doing fine. It will keep providing earnings as we go along.
And eventually, the troubles of the past will be cleaned up. And then you'll have a wonderful business that's going to earn a lot of money.
LIU: Oh, if there was a scenario where he stepped down, would you still be confident in your investment of Bank of America?
BUFFETT: Well, we wouldn't have any choice because we signed up for five years at a minimum. I don't want him to step down. Brian, stay at work.
LIU: And Warren, have you gotten other calls for, let's say, from European leaders, that they're looking at the liquidity situation in their bank? Have you gotten calls at all about putting capital there?
BUFFETT: Very, very few. They need capital in many of their banks. But they haven't called us. And we would not be a good prospect.
LIU: Very few or just not at all have called you?
BUFFETT: Not quite none at all.
LIU: OK. Can you say who has called you?
BUFFETT: No, no, I wouldn't say that.
LIU: OK. And just lastly, Warren, I want to get back just very quickly to the politics issue. I know you're a big supporter of President Obama...
BUFFETT: Right.
LIU: ...that (ph) you're holding (ph) the fundraiser for him tonight. But if there was one Republican candidate that you could back, who would it be?
BUFFETT: I don't think I'll speculate on that. I'll go with Obama.
LIU: Is there any one, though, that has a sound economic plan?
BUFFETT: Oh, there's certainly people that I would prefer over others among the Republican. But I have voted for lots of Republicans.
I even changed my registration three years ago to Republican in order to vote for Tom Osborne for the governor of Nebraska. And I voted and contributed to other Republicans as a matter of effort.
LIU: But who's the best of the pack right now?
BUFFETT: I don't think I will comment on that one.
LIU: OK. Warren, always great to see you.
BUFFETT: OK.
LIU: Thank you so much. Really appreciate it.
BUFFETT: OK.
LIU: To Warren Buffett and of course also to Cathy Baron Tamraz...
BARON TAMRAZ: Thank you very much.
LIU: ...of Business Wire.
10:40
***END OF TRANSCRIPT***
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