Surprise! Regulators Send Bank of America Stock Soaring

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

It's a sunny Monday morning for Bank of America (NYSE: BAC  )  as investors push the big bank's share price higher and higher on the news that some key regulators -- such as the Attorneys General of New York and Delaware -- have dropped their opposition to the troubled $8.5 billion settlement agreement the big guy penned with 22 institutional investors back in 2011.

After closing at a respectable $12.24 last Friday, B of A has been spreading its wings for the first hour or so of the market day, gaining 2.75% already today. Both the Dow and S&P 500 (SNPINDEX: ^GSPC  ) are still quiet, but I'm betting that Bank of America's skyward trajectory will be lifting the first of those indices, as well.

How are B of A's peers doing this glorious morning? Not too shabby, as it turns out. Wells Fargo (NYSE: WFC  ) is up by 0.48%, Citigroup (NYSE: C  ) by 1.13%, and JPMorgan Chase (NYSE: JPM  ) has rebounded nicely from its drubbing of last week, proudly displaying a sweet 1.53% uptick in share price by mid-morning. Considering all of the bad news the huge bank delivered last week, this is truly a Phoenix-like moment.

But, wait. There's a speck of nasty news just out today, and it concerns Bank of America. New York's top prosecutor, Eric Schneiderman, has both B of A and Wells Fargo in his sights at the moment, preparing to sue the heck out of the two mortgage lenders for "repeatedly violating" the conditions of the National Mortgage Settlement.

But Friday's good news is, at least for the moment, wrapping Bank of America in its warm embrace, with no trace of this more recent issue on the horizon.

As the big banks enjoy one of their better days, keep in mind that it is the overall performance of a stock that really counts. As Foolish, long-term investors, we recognize the fact that one-day changes in share price don't make or break an investment. Even stocks have good days and bad days, so it's important to realize that sometimes they're not portents of dire news, but merely squiggles that we can safely ignore. 

Bank of America's stock doubled in 2012 -- and today is looking like 2013 could be an instant replay of that triumph. With significant challenges still ahead, however, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2410716, ~/Articles/ArticleHandler.aspx, 9/25/2016 10:32:43 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
BAC $15.52 Down -0.08 -0.51%
Bank of America CAPS Rating: ****
JPM $67.25 Down -0.14 -0.21%
JPMorgan Chase CAPS Rating: ****
WFC $45.74 Up +0.02 +0.04%
Wells Fargo CAPS Rating: ****