Warren Buffett Saves Bank of America

Warren Buffett's 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 [BAC 7.65 0.66 (+9.44%) ] shares jumped as high as $8.80 in Thursday trading before dropping later in the day. Shares rose 9.44 percent to close at $7.65 on Thursday.

"This helps with the credibility gap that I think has existed in the minds of some shareholders. It reiterates the point that the balance sheet is healthy. They needed an endorsement in the market and they got it," said Jon Finger, managing partner of Finger Interests in Houston. Read More