Warren Buffett plowed $5 billion into Bank of America during the debt crisis. Here’s the story of how the investor helped the bank and made a fortune in the process.

Business Insider Australia | Oct 17, 2020 at 12:15 PM
  • Warren Buffett plowed $US5 billion into Bank of America during the US sovereign-debt crisis in 2011, shoring up confidence in the embattled lender and striking one of the most lucrative deals of his career.
  • Buffett and Moynihan agreed that Berkshire would hand $US5 billion in cash to Bank of America, in exchange for $US5 billion worth of preferred shares, redeemable at a 5% premium and paying a 5% annual dividend.
  • Berkshire’s common shares were worth over $US20 billion at the end of 2017 – more than triple the cost of its initial investment, even before accounting for the dividends it received.