Bank of America to receive $5 billion investment from Warren Buffett

By Kyle Chezum Updated on 9/25/2013

The Omaha-based firm, Berkshire Hathaway - operated by investment high roller Warren Buffett, will purchase 50,000 shares of Bank of America preferred stock. At rate of $100,000 per share, the wounded bank will receive a total investment of $5 billion.

Bank of America CEO, Brian Moynihan said "We are building the best franchise in financial services and we have laid out a clear plan to deliver long-term shareholder value. I remain confident that we have the capital and liquidity we need to run our business. At the same time, I also recognize that a large investment by Warren Buffett is a strong endorsement in our vision and our strategy."

The question of how desperate Bank of America was to receive this investment, remains at the center of much heated debate.