(AP/Chuck Burton)

BofA shares soar after Buffett invests $5 billion

Berkshire Hathaway steps in to help ailing Bank of America


Associated Press
August 25, 2011 5:41PM (UTC)

Warren Buffett's Berkshire Hathaway is investing $5 billion in Bank of America, sending its shares soaring by 24 percent.

Buffett said Thursday he had called Moynihan to ask about investing because he considered Bank of America to be a strong company with good leadership.

Advertisement:

The bank has struggled under the weight of toxic mortgages from its 2008 purchase of Countrywide Financial Corp. In recent weeks, CEO Brian Moynihan has insisted the bank doesn't need to raise capital.

Moynihan says the company still has the capital and liquidity it needs. But he also said he realizes that an investment from Buffett represents a strong endorsement.

Bank of America Corp. is up $1.69 to $8.68 at the opening bell.


Associated Press

MORE FROM Associated Press

Related Topics ------------------------------------------

U.s. Economy

BROWSE SALON.COM
COMPLETELY AD FREE,
FOR THE NEXT HOUR

Read Now, Pay Later - no upfront
registration for 1-Hour Access

Click Here
7-Day Access and Monthly
Subscriptions also available
No tracking or personal data collection
beyond name and email address

•••






Fearless journalism
in your inbox every day

Sign up for our free newsletter

• • •