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Warren Buffett’s Berkshire Hathaway Inc is seeking permission from the Federal Reserve to boost its stake in Bank of America Corp above the 10 per cent level, according to an application document provided by the Fed on Tuesday.

Bloomberg first reported the application on Tuesday. Shares of BofA gained 3 per cent after the report came out, dipping slightly to close at 2.02 per cent.

Berkshire, which has a 9.96 per cent stake in BofA, filed an application with the Fed this month, assuring the regulator that it will passively invest in the bank and will not try to force a change in strategy or corporate structure.

“Berkshire routinely assesses market conditions and may decide to purchase additional shares of common stock of Bank of America based on its evaluation of the investment opportunity presented by such purchases,” the application reads.

“Berkshire anticipates that any such purchases would be on the open market at prevailing market prices.”

Ownership above the 10 per cent 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 already the largest shareholder in BofA as well as American Express Co and Wells Fargo and has a significant stake in JPMorgan Chase & Co .

In 2017, Berkshire pulled a similar application to boost its Wells Fargo stake 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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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 24/05/24 7:00pm EDT.

SymbolName% changeLast
WFC-N
Wells Fargo & Company
+0.89%60.21
BAC-N
Bank of America Corp
+1.35%39.7
AXP-N
American Express Company
+1.16%238.18
BRK-B-N
Berkshire Hathaway Cl B
+0.38%407.41
BRK-A-N
Berkshire Hathaway Cl A
+0.58%615900

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