Bank of America had been having issues with the way they managed their foreclosure practices. In the long run this meant that they also had issues with mortgage investors. They had about a $8.8 billion loss and a large sum of it was attributed to the settlement they made with mortgage investors. Not only that, but the bank was also was planning on firing thousands of workers.

On August 25th 2011, Berkshire Hathaway announces plans to invest $5 billion in Bank of America. This investment came in a time of dire need for Bank of America because they were having hard times.

Once Berkshire Hathway announced that they would be investing on Bank of America, the shares went up more than 25%. Thanks to the invest from Warren Buffett, chairman and CEO of Berkshire Hathaway, Bank of America was given a chance to recuperate from its downfall.