Billionaire Warren Buffett’s company is exercising Bank of America Corp. warrants that will work out to a paper profit of $12 billion.

Buffett’s firm, Berkshire Hathaway Inc., in 2011 invested $5 billion in the Charlotte, North Carolina-based financial institution.

At the time, BofA’s shares were in danger of falling below $6 as investors worried about its ability to meet regulatory capital requirements.

Source: Mortgage Daily