Bank of of America Corp, currently the largest bank in the U.S. by assets, announced that it would receive a $5 billion investment from Warren Buffett’s Berkshire Hathaway. Which had a big impact on BofA’s shares.
I have to say, my first thought was, “Hey Warren, give me a call!” My second was irritation with Bank of America. Ultimately, someone needs to get these banks on track, better Warren than me right now.
Warren Buffett has long been considered a great investment resource for major companies. While he has been reliable in this sense, experts say he’s not looking to add to his philanthropic credits. Instead, he’s using his investment savvy to turn a hefty profit for his company and investors. Good job, Warren!
The good news is investors in Bank of America, as well as other banks, have benefited from the deal. As of Thursday, BofA, Morgan Stanley, Citigroup and American Express Co. all saw gains.
It may be a substantial amount of money however experts say Buffett’s investment may not be enough, but with growing fears that the bank needed to raise capital to offset liabilities related to subprime mortgages, investors may be able to continue celebrating gains and hopefully get things back on track.
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