Billionaire Warren Buffett has faith in the U.S. financial system and he's putting up some serious money to prove it.

September 24, 2008 12:00:00 AM PDT
Billionaire Warren Buffett has faith in the U.S. financial system and he's putting up some serious money to prove it.While others are dumping their stock, Buffett is investing five-billion dollars in Goldman Sachs.

Goldman is selling that amount of preferred stock to Buffett's insurance and investment company, Berkshire Hathaway. It's a huge vote of confidence for one of the survivors of the credit crisis.

While Goldman is already well-capitalized, raising more cash will ease investors' concerns about its relatively high leverage ratio.

Investment banks use leverage, or borrowed money to boost returns.


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