Keeping up with the latest news on your investments can be overwhelming. To make it easier for you, I've dug through the Fool's financial sector coverage over the past week to highlight a few stories that you don't want to overlook.

Read on for this week's highlights.

1. What to Do About the Knight Capital Battle
Earlier this week, the Wall Street Journal reported a couple of possible bids for Knight Capital's (NYSE:KGC) market-making unit, the section of Knight's business that both makes it money and cost it money. Getco's bid was confirmed Wednesday, and details of the Virtu were released yesterday.

Fool Matt Koppenheffer thinks a sale "could be the right solution for investors," but reminds us that we shouldn't buy on speculative news like this. Whether you're a current Knight shareholder, or thinking about becoming one, Matt has some advice for you as these deals are considered.

2. Two New Reasons to Cheer Bank of America
Amanda Alix reminds us why we love Bank of America (NYSE:BAC) with two feel-good stories from the megabank this week, both involving the resolving of some messy legal issues. The bank reached a settlement in a case for transaction fees shenanigans, and a district court judge decided that B of A was off the hook for some of its liability regarding messy Countrywide MBSes. Amanda thinks these two developments will give the bank a good start into 2013.

If you're not getting the warm and fuzzies, though, maybe you agree with Anand Chokkavelu on the three reasons to sell Bank of America today.

3. Another Day in Court, Another Loss for Big Banks
Unfortunately for Bank of America, it might be two steps forward, and one step back. It, along with Citigroup (NYSE:C), Credit Suisse (NYSE:CS), and HSBC (NYSE:HSBC), was denied its request to dismiss lawsuits filed against them for the sale of mortgage bonds to Fannie Mae and Freddie Mac during the run-up to the 2008 crisis. Not so fast, guys.

Wells Fargo (NYSE:WFC), on the other hand, is enjoying a little euphoria on news that the SEC isn't filing charges against it over its dealing in mortgage securities during the same crisis. Though Wells Fargo isn't completely out of the legal woods, Eric Volkman believes the SEC's decision "is more a hope that this is the beginning of the end of the bank's lawsuit/penalty cycle."

4. 8 Buffett Secrets for Investing in Banks
He might not love banks as much as we do, but superinvestor Warren Buffett certainly understands them. If you currently have money in banks, or are thinking about putting some in, take a page out of Buffett's book with these eight tips for better investing. Here's a preview: Go long, and stay calm.

5. 3 Profitable Investment Signs You Can Bank On
Kevin Chen walks us through three things to look for to pick the best financial sector investment. The magical numbers are the price-to-book ratio, the debt-to-equity ratio, and a good-looking return on assets. Click through to read his reasoning.

Banking is a hot place to be right now, and Matt Koppenheffer agrees. Click here to read why he thinks more bank deals are ahead.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.