Shares are spiking on Bank of America as billionaire investor Warren Buffett announces he'll invest $5 billion into the ailing bank. Earlier this week, shares in the nation's largest bank had been tanking as investors feared it would have to raise some $50 billion in outside capital and others, such as Business Insider's Henry Blodget, suggested the bank might need a government bailout. Already, the move by the Berkshire Hathaway CEO (who really wants the government to raise his taxes) is being likened to his decision to prop up Goldman Sachs when its stock was tanking during the financial crisis. "Bank of America shares rose 20 percent in pre-market trading on the news," reports Reuters. "Bank of America will sell Berkshire 50,000 shares of cumulative perpetual preferred stock with a 6 percent annual dividend, it said in a statement on Thursday. Bank of America can buy back the investment at any time by paying Buffett a 5 percent premium." The news service notes that shares in the bank lost about a third of their value this month and lost half their value since earlier this year.
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