Warren Buffett came to the rescue of Bank of America when he announced his firm, Berkshire Hathaway, would invest $5 billion into the beleaguered financial firm.
Berkshire Hathaway has agreed to buy 50,000 preferred shares that will pay a 6% annual dividend. According to CNBC, Buffett approached Bank of America early Wednesday about a potential deal.
“I remain confident that we have the capital and liquidity we need to run our business,” Bank of America chief executive Brian Moynihan said in a statement. “At the same time, I also recognize that a large investment by Warren Buffett is a strong endorsement in our vision and our strategy.”