Buffett Investing $5 Billion In Bank Of America

[jpbaz1960]

NPR - August 25, 2011

Warren Buffett's Berkshire Hathaway announced it is investing $5 billion in Bank of America, sending the banking giant's shares soaring. Bank of America has struggled under the weight of toxic mortgages from its 2008 purchase of Countrywide Financial Corp.

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

The bank has struggled under the weight of toxic mortgages from its 2008 purchase of Countrywide Financial Corp. In recent weeks, 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. was trading at $8.29, up $1.30, or 18 percent, shortly after the market opened.

Link: http://www.npr.org/2011/08/25/139940578/buffett-investing-5-billion-in-bank-of-america

Note: I wonder if Buffet is getting ready to cash-in? ;n)

[hammer911]

I hope so.....GO RV!!!~~~

[Amber Williams]

yea. maybe hes gearing up for somethin big. I know hes gots TONS of money, but 5 Billion is alot to invest in one company... hmmmm

[tyron]

If he had not, there were strong indications in the share price trends that BOA was going the same way as Lehman brothers. It was even predicted that it would be bankrupt by mid-Sept. Buffet was called upon by the PTB to shore up the gold market recently too, but the market is still an unstoppable beast. And this can only be a delay in an inevitable demise.

[zaborniake]

Isn't BoA setting up shop in Iraq?

[darwinatridge]

yea. maybe hes gearing up for somethin big. I know hes gots TONS of money, but 5 Billion is alot to invest in one company... hmmmm

And he should put his money where his mouth is and donate 50% of it to the government in taxes.

[stargazer55]

Boy! That news has to tick off some BOA haters!

[tyron]

And he should put his money where his mouth is and donate 50% of it to the government in taxes.

Don't know why you got a -1 (remedied that), but you are absolutely right. There he is worth 47billion, but pretending that he is in the same class as those who earn $250,000 a year and trying to speak for them and influencing how they should be taxed. He is status quo protecting status quo.