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Finance

Warren Buffett To The Rescue, Will Invest In Bank Of America

Bank of America's stock jumped nearly 24 percent today following news that Warren Buffett's Berkshire Hathaway will invest $5 billion in the bank. Buffett's vote of confidence assuages some worries over the value of bad mortgage loans still on the bank's books.

The price of B of A stock had fallen by nearly 50 percent since the beginning of this year.

Jess Jiang/NPR
Bank of America stock price since 2011
Jess Jiang/NPR

Buffett's Berkshire invested $5 billion in Goldman Sachs in 2008. When Goldman paid the investor back earlier this year, Buffett profited $1.7 billion. That's about $190,000 a day.