The news that Warren Buffet's Berkshire Hathaway would buy 5B of preferred stock in Bank of America had sent shares of the bank up by +25% at one point, before ending the day +9.44% higher (close: 7.65). The preferred shares pay a dividend of 6% annually, and are redeemable at anytime by Bank of America at a 5% premium. The deal also gave Berkshire warrants to buy 700M common shares at a strike price of 7.14 each. The billionaire investor said he was impressed that the bank was ‘acting aggressively to put their challenges behind them'
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