Warren Buffett to Invest $5 Billion in Bank of America

August 25th, 2011

Via: Reuters:

Warren Buffett’s Berkshire Hathaway will invest $5 billion in Bank of America, stepping in to shore up the company in the same way he helped prop up Goldman Sachs during the financial crisis.

Bank of America shares rose 24 percent to $8.65 in early trading, erasing a large part of the stock’s August losses.

…

Bank of America will sell Berkshire 50,000 shares of cumulative perpetual preferred stock with a 6 percent annual dividend, it said in a statement on Thursday. Bank of America can buy back the investment at any time by paying Buffett a 5 percent premium.

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