After years of back-and-forth, Bank of America (NYSE:BAC) and MBIA (NYSE:MBI) have settled the dispute over issues stemming from legacy Countrywide practices. The Charlotte, N.C.-based bank agreed to pay $1.6 billion in cash, as well as engage in some other actions. Both stocks soared after the deal was announced on Monday.

In this video, Motley Fool banking analysts Matt Koppenheffer and David Hanson grade the settlement for the two parties and tell viewers what it means for investors going forward.

 

David Hanson has no position in any stocks mentioned. Matt Koppenheffer and The Motley Fool own shares of Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.