3 Things That Went Bank of America’s Way This Week

Bank of America had a busy week – in addition to raising its dividend

Mar 28, 2014 at 7:26PM

Bac Fool Editorial

Bank of America's (NYSE:BAC) big dividend boost wasn't the only good thing to happen to the bank this week.

Investors in Bank of America were understandably preoccupied over the past several days, as the news of the big bank's dividend hike, to $0.05 per share, hogged all their attention. Though the increase wasn't huge, the psychological boost was enormous, since this was the first time B of A was able to raise its dividend since the financial crisis.

But that wasn't the only positive news for Bank of America in the last week of March. Here are a few more tidbits of good news that came along, giving the big bank's investors even more reason to smile.

1. A big payment to resolve mortgage claims
The announcement that B of A would be paying the Federal Housing Finance Agency $9.5 billion to settle all outstanding residential mortgage bond claims is a real biggie, taking a huge liability off of the big bank's plate. Knowing that 88% of these types of claims have now been put to bed is likely making investors breathe easier, as well.

2. Charges against a former CEO are put to bed
Former Bank of America CEO Kenneth Lewis, the man who helped turn the bank into the behemoth that current chief Brian Moynihan has been furiously trying to trim down, has settled charges against him related to the acquisition of Merrill Lynch.

Lewis and B of A have both settled claims by the New York Attorney General's office that investors were deceived about the financial status of Merrill during its sale to B of A in late 2008. Both portions of the settlement, Lewis' $10 million and the bank's $15 million will be paid by Bank of America, finally putting "paid" to an unpleasantly nagging issue left over from the tumultuous early days of the financial crisis.

3. A mortgage-related lawsuit gets thrown out
In a blow to the U.S. Department of Justice, a federal magistrate judge in Bank of America's hometown of Charlotte, North Carolina, ruled in favor of the bank in a mortgage-backed securities case on Thursday. The DOJ was bringing suit against B of A over $850 million in MBSes that it said were misrepresented to investors, using a law called the Financial Institution Reform, Recovery and Enforcement Act of 1989.

The FIRREA, which enables the government to sue entities based upon damage done to federal institutions, was used to good effect last year against B of A in the so-called "Hustle" suit. That case, in which prosecutors claimed that fraud in Countrywide's fast-paced mortgage loan production pipeline led to losses at Fannie Mae and Freddie Mac, was a huge win for the federal government.

The DOJ will appeal the ruling, in which the judge stated that FIRREA has historically been used only in cases involving actual mortgage loans, and not MBSes. Right now, though, it's another win for B of A, during one of its most satisfying weeks in years.

The banking sea-change that you can invest in
While Bank of America gets its ducks in a row, there's a brand-new company that's revolutionizing banking, and is poised to kill the hated traditional brick-and-mortar banking model. And amazingly, despite its rapid growth, this company is still flying under the radar of Wall Street. To learn about about this company, click here to access our new special free report.

Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers