Since the beginning of the year, Bank of America (NYSE: BAC ) has cleared up much of the uncertainty that's weighed on its stock. In January, it settled with Fannie Mae to resolve billions of dollars' worth of claims related to the sale of faulty mortgages by Countrywide Financial. In April, it settled multiple securities fraud lawsuits with private investors. And most recently, it came to an agreement with MBIA (NYSE: MBI ) , resolving one of the most contentious legal battles related to the financial crisis.
In the video below, Motley Fool contributor John Maxfield discusses whether, with these things out of the way, it's reasonable for investors to conclude that Bank of America stock will outperform the market going forward.
With so much of the financial industry getting bad press these days, it may be a greedy when others are fearful moment. Not surprisingly, some of Warren Buffett's biggest investments are in the space. In the Motley Fool's free report, The Stocks Only the Smartest Investors Are Buying, you can learn about a small, under-the-radar bank that's too tiny for Buffett's billions. Too bad, because it has better operating metrics than his favorites. Just click here to keep reading.