Bank of America is a strong, well-led company, and I called Brian to tell him I wanted to invest in it. I am impressed with the profit-generating abilities of this franchise, and that they are acting aggressively to put their challenges behind them.
~Warren Buffett, chairman and CEO, Berkshire Hathaway, August 25, 2011
(Under the terms of the deal, Berkshire will get 50,000 preferred shares that carry a dividend of 6% a year and are redeemable at a 5% premium, along with warrants to purchase 700 million Bank of America shares at an exercise price of $7.14 each. The warrants may be exercised in whole or in part in the 10 years following the closing of the deal.)