Warren Buffett to invest $5 billion in Bank of America

Warren Buffett's conglomerate Berkshire Hathaway will invest $5 billion in Bank of America, stepping in to shore up the company in the same way he helped prop up Goldman Sachs during the financial crisis.

Bank of America said in a statement on Thursday it would sell Berkshire 50,000 shares of cumulative perpetual preferred stock with a 6 percent annual dividend.