Warren Buffett in Talks with White House on Banking Crisis and Executive Compensation.

Berkshire Hathaway may be considering a deal with a struggling regional bank, similar to the 2008 bailout of Goldman Sachs. The deal would likely involve purchasing preferred shares with a yield between 5% and 10%, along with warrants to buy common stock at a predetermined price. A $5 billion investment could potentially make a difference for a struggling bank like First Republic Bank, and would add $500 million in annual cash flow for Berkshire Hathaway. The deal could increase the value of Berkshire Hathaway shares and yield a cheaper valuation.