Reports this morning suggest that Warren Buffett is to take a $5billion stake in Goldman Sachs Group Inc.
The world’s most famous investor will invest $5bn in a major boost for the Wall street bank.
This is seen as a major vote of confidence in Goldman Sachs and in the wider financial system as Congress dithers over whether it will or will not approve a rescue package.
Shares of Goldman rose 8.1 percent following the announcement, late last night.
Buffett already has major stakes in US commercial banks and some commentators have questioned his motives: Rather than a vote of confidence, is this move purely aimed at injecting some positive momentum into a market that has seen billions wiped off the value of Buffett’s Berkshire Hathaway.