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Buffett supports Bank of America after its error

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News,Business

OMAHA, Neb. (AP) — An error revealed recently by Bank of America in its reports to the Federal Reserve hasn't diminished Warren Buffett's appreciation of the bank.

Buffett told Berkshire Hathaway shareholders Saturday that he's not bothered that the bank had to suspend a long-awaited dividend increase and stock buyback due to the error.

Back in 2011, Buffett invested $5 billion in Bank of America in exchange for 6 percent interest and warrants to buy 700 million shares of stock at $7.14 apiece.

The bank's mistake was tied to an incorrect adjustment of how it valued securities it obtained through its acquisition of Merrill Lynch in 2009. The bank must now resubmit a new capital plan to Fed.

Berkshire Hathaway also has large investments in Wells Fargo & Co., U.S. Bancorp and Goldman Sachs.

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