archyworldys

US major bank acquisition stake in Warren Buffett, jumps in exchange rates

The bank’s share price rose more than 5 percent in pre-opening trading after a announcement Monday night that Berkshire Hathaway, Buffett’s company, bought more than 55 million shares, building a $ 2.95 billion position by the end of March.

Shares of Citi have underperformed other players in the financial sector over the past 12 months. Citi’s share price fell nearly 40 percent, while the Financial Select Sector SPDR Fund fell 12 percent over the same period.

Citi took over Jane Frasert a year ago as the new CEO, the first female CEO of one of the major U.S. banks. Based on Fraser’s decision, the company has exited less profitable parts of its global empire, including 13 Asian and European markets.

Citi joins several other banks within Buffett’s portfolio. Berkshire owned $ 41.6 billion in Bank of America shares at the end of March, the second-largest position after Apple. By the way, Berkshire has been holding Bank of America securities since 2017.

Berkshire has built a $ 390 million new stake in Ally Financial. The stock jumped 4 percent in pre-opening trading after the announcement.

The conglomerate also owns shares in Bank of NY Mellon, US Bancorp, Mastercard and Visa.

Buffets also got out of Wells Freight.

(CNBC)

Cover image: Kevin Dietsch / Getty Images

Trending