oracle of omaha photoFollowing is the unofficial transcript of breaking news from CNBC’s Becky Quick on “Squawk on the Street” (9-11AM ET).

From http://www.cnbc.com video and text.

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CARL QUINTANILLA: WANT TO BRING IN BECKY QUICK, WHO KNOWS WARREN PRETTY WELL GOOD TO TALK TO YOU ON THE PHONE THIS MORNING.

BECKY QUICK: HEY CARL, HEY EVERYBODY. YEAH, I JUST GOT OFF THE PHONE WITH WARREN BUFFETT TALKING TO HIM A LITTLE BIT ABOUT THIS DEAL. NOW, WHAT’S INTERESTING ABOUT THIS, I GOT TO TURN DOWN THE TV A LITTLE BIT, WHAT’S INTERESTING ABOUT THIS IN BACKGROUND IS THAT BUFFETT SAYS JUST DREAMT THIS IDEA UP ON WEDNESDAY MORNING WHILE HE WAS THE BATHTUB. HE HAD NEVER SPOKEN WITH BRIAN MOYNIHAN BEFORE. IN FACT, HE DIDN’T EVEN HAVE HIS PHONE NUMBER. BUT AS THE PRESS RELEASE POINTS OUT, THIS IS SOMETHING AN OUTREACH THAT BUFFETT MADE TO BRIAN MOYNIHAN OF BANK OF AMERICA. HE HAD ONE OF HIS ASSISTANTS CALL MOYNIHAN’S ASSISTANT AND OFFERED HIS PRIVATE NUMBER UP. I GUESS THEY SPOKE AT SOME POINT MID-MORNING YESTERDAY AND MOYNIHAN WAS RECEPTIVE TO THIS WHOLE IDEA. WHAT’S AMAZING IS THIS WENT FROM BEING THOUGHT UP YESTERDAY MORNING TO ACTUALLY BEING INITIATED JUST 24 HOURS LATER. NOW BUFFETT SAYS HE THINKS IT’S A GOOD $5 BILLION INVESTMENT. I ASKED HIM WHY NOW AND HE SAID HE THINKS IT’S BETTER THAN ANYTHING ELSE THAT I CAN THINK OF AT THE TIME. HE ALSO SAID THAT IT’S VERY LIKELY THAT OVER TEN YEARS, THAT THEY DO EXERCISE AND OWN ALL OF THOSE WARRANTS, THAT THEY TURN THEM INTO SHARES. AT THAT POINT, IF SHARES OUTSTANDING EXISTS AS THEY DO TODAY, THEY’D OWN SIX AND A FRACTION OF PERCENT OF THE COMPANY. SO IT’S A MASSIVE INVESTMENT THAT HE’S THINKING OVER THE NEXT DECADE HE’D BE MAKING IN BANK OF AMERICA. I HEARD YOU ALL EARLIER POINT OUT THAT THIS IS SOMETHING HE’S DOING WHILE INVESTING IN WELLS FARGO. HE POINTED OUT HE THINKS WELLS AND BANK OF AMERICA HAVE TWO BEST DEPOSIT FRANCHISES IN THE UNITED STATES. HE DOES SAY THAT BANK OF AMERICA HAS SIGNIFICANT PROBLEMS IN THEIR PAST, BUT THEY’RE WORKING THEIR WAY THROUGH THEM. HE ADMITS THIS IS NOT SOMETHING THAT’S GOING TO BE RESOLVED IN A WEEK, MONTH, VERY LIKELY EVEN IN A YEAR, BUT THIS IS REMINISCENT OF SOME THINGS HE’S DONE IN THE PAST. YOU LOOK WHEN HE’S MADE MAJOR, MAJOR INVESTMENTS, IT WAS WHEN AMERICAN EXPRESS BACK IN THE 1960s. IT WAS WHEN AMERICAN EXPRESS HAD BIG PROBLEMS, TOO. IT WAS THE SALAD OIL SCANDAL.

QUINTANILLA: BECKY, LET ME JUST PAUSE FOR ONE SECOND AT THE OPENING BELL JUST QUICKLY TO LET PEOPLE KNOW KEMPER CORPORATION HERE AT THE BIG BOARD, AN INSURANCE HOLDING COMPANY CHANGES ITS NAME FROM UNITRIN AND OVER AT THE NASDAQ, CUPCAKE RETAILER, CRUMBS HOLDINGS AND THAT S&P REAL-TIME EXCHANGE BOARD LIGHTING UP TO THE GREEN LARGELY BECAUSE OF WHAT WARREN BUFFETT HAS DONE IN JUST THE PAST 15 MINUTES.

MELISSA LEE: WE SHOULD NOTE APPLE OPENING LOWER, BUT WE WANT TO GET BACK TO BECKY QUICK ON THE PHONE TO, SHE JUST TALKED TO WARREN BUFFETT. BECKY, I’M JUST CURIOUS, I MEAN OBVIOUSLY, HE SEEMS VERY CONFIDENT IN THIS INVESTMENT. IT’S A LARGE INVESTMENT, EVEN FOR WARREN BUFFETT, BUT ARE THERE ANY ISSUES? BUT WHERE THERE ANY ISSUES WHERE HE SAID YOU KNOW WHAT THESE ARE THE THINGS THAT I MIGHT BE A LITTLE CONCERNED ABOUT DOWN THE ROAD OR THESE ARE THE ISSUES THAT I WILL CONTINUE TO TALK TO BAC ABOUT DOWN THE ROAD.

QUICK: HE DID NOT, MELISSA. HE DID GET SPECIFIC WITH IT BUT HE DID SAY THAT OBVIOUSLY THEY HAVE SOME UNKNOWN LIABILITIES AND THAT’S A HUGE ISSUE. IT’S NOT SOMETHING TO BE TAKEN LIGHTLY. BUT I ASKED HIM WHY NOW AND HE SAID IT’S BECAUSE THE STOCK HAS COME DOWN SO MUCH RECENTLY, BANK OF AMERICA HAS GONE DOWN A LOT RECENTLY. AND HE SAYS HE THINKS BANK OF AMERICA IS CERTAIN TO BE AROUND OVER THE LONG-TERM. HE ALSO SAYS BY THE WAY, THAT THIS IS A VOTE OF CONFIDENCE. NOT ONLY IN BANK OF AMERICA, BUT ALSO IN THE COUNTRY. AND LISTEN TO THIS, HE SAYS ALL THOSE PEOPLE WHO THINK THE WORLD IS GOING TO END. I THINK THEY’RE WRONG.

QUINTANILLA: YEAH, I THINK IT IS INTERESTED BECK. I MEAN IT WOULD BE EASY TO MAKE THIS A BANKING OR B OF A STORY, BUT YOU LOOK AT THE TIMING OF THE WARRANTS AND YOU LOOK AT THEIR EXPOSURE TO THE CONSUMER OVER ALL AND IT IS SORT OF A MACRO BET MORE THAN A BANKING BET.,

QUICK: RIGHT AND THAT’S EXACTLY HIS POINT ON THIS CARL IS THAT HE LOOKS AROUND, IT DOES LOOK LIKE A LOT OF PEOPLE THINK THE SKY IS FALLING. HE SAYS THIS IS NOT 2008. THIS IS NOTHING LIKE WHAT WE SAW BACK THEN, WHICH INTERESTINGLY ENOUGH THIS MORNING ON “SQUAWK BOX” RON BARON SAID THE SAME THING. THIS IS NOT 2008. AND THAT’S IN FACT WHY HE SAYS BANK OF AMERICA GOT A BETTER DEAL THAN THE TERMS HE HAD LAID OUT FOR BOTH GENERAL ELECTRIC AND GOLDMAN SACHS THE LAST TIME HE DID DEALS LIKE THIS. DAVID FABER POINTED OUT THAT AT THAT POINT, THOSE PREFERRED SHARES WERE 10%. HE’S ONLY GETTING 6% ON PREFERRED. HE POINTS OUT THAT THAT IS A BETTER DEAL FOR BANK OF AMERICA AND THAT’S BECAUSE THIS IS NOT 2008. NOW HE DOES SAY THAT THE WARRANTS, HE GETS A BETTER DEAL ON THE WARRANTS THAN HE GOT UNDER THE DEALS WITH GOLDMAN SACHS AND GE. THE WARRANTS WITH GOLDMAN SACHS COULD HAVE BEEN CALLED AT ANY TIME. NOW GOLDMAN SACHS CALLED THE PREFERRED EARLIER THIS YEAR WHEN THE GOVERNMENT ALLOWED THEM TO DO THAT. GENERAL ELECTRIC, YOU HAD THREE YEARS THAT THEY WERE CALLABLE AND GE HAS SAID PUBLICLY THEY WILL CALL THOSE AS SOON AS THEY CAN. I THINK THAT’S MAYBE IN OCTOBER.

DAVID FABER: IT’S DAVID. YEAH, THAT IS RIGHT. THREE YEARS FROM OCTOBER 1st ’08 WHEN IT WAS A $3 BILLION INVESTMENT FROM BERKSHIRE AS YOU SAID INTO GE. NOW OF COURSE, THE WARRANTS HAD A STRIKE PRICE OF $22.25, SO HE’S NOT ANYWHERE IN THE MONEY THERE AND INTERESTINGLY NOT IN THE MONEY WITH THE GOLDMAN SACHS WARRANTS, WHICH HAD A STRIKE PRICE OF $115 A SHARE.

QUICK: RIGHT BUT DAVID, YOU POINTED OUT HE’S ALREADY HE’S IN THE MONEY WITH THESE BECAUSE OF THE HUGE MOVE WE’VE SEEN THIS MORNING IN BANK OF AMERICA.

FABER: RIGHT. YEAH. OBVIOUSLY, VERY INTERESTING TO WATCH. AND AGAIN, TO YOUR POINT, NOT ’08. I WOULD ALSO POINT OUT THERE’S PREFERRED SHARES OUT THERE THAT WERE YIELDING AS MUCH AS 10 OR 11 PERCENT EARLIER THIS WEEK SO AS WELL SO TO THE EXTENT THAT HE THINKS HE’S MONEY GOOD ON HIS PREFERRED

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