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Warren Buffett, one of the world's richest men, is "impressed" with Bank of America's recent "aggressiveness" as his investment unit, Berkshire Hathaway, announced Thursday that the Oracle from Omaha will be pumping $5 billion of fresh capital into the nation's largest bank.
Buffett described BofA as "a strong, well-led company," which has acted "aggressively to put its challenges behind." He phoned BofA CEO Brian Moynihan and told him that he wanted to invest in the bank.
The announcement rallied BofA shares in the stock market, which is up by over 25 percent.
Buffett will receive the bank's preferred shares with BofA agreeing to his terms. The bank will pay Berkshire 6 percent dividend annually, and if the bank plans to redeem the shares, Berkshire will be paid a 5 percent premium.
In the last four years, BofA has been hard hit by the U.S. housing crash and the market crisis that followed.
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Investing - Warren Buffett 'Impressed' with Bank of America, Invests $5 Billion