It's easy to see why Goldman Sachs (NYSE: GS) has been hankering for some time to buy back the preferred shares it sold Warren Buffett at the height of the financial crisis. The sweetheart deal started looking somewhat less shrewd for the gilded financial firm after the crisis passed.

Buffett has publicly noted the $500 million in dividends the shares entitled him to amounted to $16 a second, notes the Associated Press.

Unsurprisingly, Goldman will buy back Berkshire Hathaway's 50,000 preferred shares for $5.65 billion, according to news reports. The bank has received approval for the transaction from regulators and it will take place in April. Berkshire will keep warrants to buy 43.5 million common shares at $115 each.

It seems the transaction has been in the news constantly. The latest reason stems from the insider trading investigation of alleged mastermind Raj Rajaratnam. The SEC has alleged that Rajat Gupta, former McKinsey head, tipped Rajaratnam off to the Buffett deal, allowing him to rack up a big profit. Gupta has said he is innocent of such charges.

For Goldman Sachs, the scent of the deal remains. In fact, CEO Lloyd Blankfein might appear as a witness in the trial to talk about the deal and what might have gone on in the boardroom. 

For more:
- here's an Associated Press article

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