Buffett 'already $1.3bn in profit' on BofA deal

Shares in Bank of America closed almost 10% higher overnight after Warren Buffett pledged to take a $5bn stake in the firm, which may have already netted him a $1.3bn profit.

BofA shares ended the day up 9.44% or 0.66 points to $7.65, having soared as much as 25% during the session. The Sage of Omaha may have earned as much as $1.3bn from his investment in the bank, as the preferred shares he bought are worth about $3.53bn, while warrants included in the deal are worth about $2.73bn based on a share price of $7.65, Bloomberg reports. Buffett also earned a paper profit of $280m in just 24 hours following the bank's share price move, the Telegraph estimates. Bank of America was the most heavily traded stock in the US this week since Citigroup before its r...