While the Bank of America (BAC +0.86%) 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.
Here's Why the Fannie Mae Settlement Will Boost Bank of America
By Matt Koppenheffer – Jan 8, 2013 at 7:00PM
NYSE: BAC
Bank of America
Market Cap
$389B
Today's Change
(0.86%) $0.45
Current Price
$53.02
Price as of October 27, 2025 at 4:00 PM ET
Why investors should like the big BofA settlement deal.
About the Author
Matt is the head of the Coverage Team for The Motely Fool's premium products. Previously, he's been . Matt is a heavy user of AI tools and is working on harnessing them to help Fool members. Previously, Matt was GM of Motley Fool Ascent, led The Motley Fool Deutschland, has been an investor on various Fool services, and co-hosted the podcast "Where the Money Is". He also co-authored the book The Astonishing Collapse of MF Global. Matt started his career in San Francisco as a technology-focused investment banker and also worked at a $15 billion private equity company. When he's thinking about how to make Fools smarter, happier, and richer, you can usually find Matt running trails or making a mess in the kitchen. He's a graduate of the University of Pennsylvania, but is a lifelong fan of Penn State football.