It remains to be seen if JPMorgan Chase (NYSE: JPM ) is truly close to shelling out $11 billion to settle crisis-era mortgage-backed security issues. But what does seem very clear is that there will be a settlement, and it will be big.
With that nine-figure settlement bouncing around in the media, JPMorgan's stock actually rose in the days following. In the video below, Fool banking analyst Matt Koppenheffer explains what the bank's investors -- and investors in competitors like Bank of America (NYSE: BAC ) and Citigroup (NYSE: C ) -- should take away from this odd combination of events.
The next bank stock home run
Have you missed out on the massive gains in bank stocks over the past few years? There's good news: It's not too late. Bargains of a lifetime are still available, but you need to know where to look. The Motley Fool's new report "Finding the Next Bank Stock Home Run" will show you how and where to find these deals. It's completely free -- click here to get started.