Warren Buffett to invest $5 billion in Goldman Sachs

Breaking News! Leading investor Warren Buffett will invest$5 billion in Goldman Sachs Group Inc. The latest development will be a major boost for Goldman. Shares of Goldman rose 8.1 percent after the announcement. The company also gained significantly on the ratings of Standard & Poor's.

Goldman has already won Federal Reserve appeal to become a bank holding company, which means it will gain easier access to financing. Buffett expressed huge confidence in Goldman Sachs while making the investment. According to Forbes magazine, Warren Buffett is the second richest person in America.