Here's Why the Fannie Mae Settlement Will Boost Bank of America

Updated

While the Bank of America deal for over $11 billion announced this week settling with Fannie Mae after the subprime mortgage disaster of 2008 is an enormous figure, in this video, Motley Fool financial analyst Matt Koppenheffer highlights a big upside for BAC investors: clarity. He outlines for us how, now that this giant gorilla isn't staring us in the face every quarter from BAC's balance sheet, investors can go forward without these lingering concerns, which will be an upside for the stock itself. This is a market principle that Koppenheffer shows is happening often in these seemingly catastrophic situations.

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The article Here's Why the Fannie Mae Settlement Will Boost Bank of America originally appeared on Fool.com.

Matt Koppenheffer owns shares of Bank of America. The Motley Fool owns shares of Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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