The New York Times is reporting that Warren Buffett may be one of the people looking at taking a large interest in Bear Stearns (BSC), perhaps 20%. Bank of America (BAC) and Wachovia (WB) may also be kicking the tires.

For those who think it is far-fetched, recall that Buffett took control of Salomon Brothers in 1991, and pushed out "King of Wall Street" John Gutfreund.

The Times says that the investment may take the a form of convertible stock. A deal would probably be done at the current market value of the shares. No premium.

If the deal works like the Salomon one did, BSC CEO James E. Cayne may need a new job.

But, he probably does not need the money.  Here are some related articles for this topic:

• Here’s Buffett and his stock performance on Forbes Richest list
• Maybe Warren Buffett Is The Buyer of Last Resort in Financials
• Buffet said he’d love a whale of a deal.

Douglas A. McIntyre

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