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Jason Wood

John,

Glad to be back. And yes, I would say the implied value on the options is at least $50, upwards of $55 plus the perpetual 10% divvy. As you said, it's a great headline but the reality is Buffett got himself a shrewd deal regardless of what happens with the equity from here.

As I said in my post, if he is now going to actively work toward creating workable marks for the toxassets, that's another thing entirely. But that remains to be seen.

John P

Jason,

Glad to see you back!

Very interesting deal. Makes for great headlines and maybe a quick rally but looking at the terms makes me question how bad GS needed the capital. Quick back of the envelope math, 5 year warrant, 47% vol (historic), strike 115, exercisable at any time with common at $125 would be worth in excess of $50.00. This number is conservative as the 10% div on the preferred isn't even factored in. Culturally Warren is a perfect fit should he exercise but the terms of the deal are quite interesting at first take. I'll be interested in how the street views the deal.

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