While the Bank of America (BAC +0.97%) deal for over $11 billion announced this week settling with Fannie Mae after the subprime mortgage disaster of 2008 is an enormous figure, in this video, Motley Fool financial analyst Matt Koppenheffer highlights a big upside for BAC investors: clarity. He outlines for us how, now that this giant gorilla isn't staring us in the face every quarter from BAC's balance sheet, investors can go forward without these lingering concerns, which will be an upside for the stock itself. This is a market principle that Koppenheffer shows is happening often in these seemingly catastrophic situations.
Here's Why the Fannie Mae Settlement Will Boost Bank of America
By Matt Koppenheffer – Jan 8, 2013 at 7:00PM
NYSE: BAC
Bank of America
Market Cap
$387B
Today's Change
(0.97%) $0.51
Current Price
$52.99
Price as of November 26, 2025 at 4:00 PM ET
Why investors should like the big BofA settlement deal.
About the Author
Matt Koppenheffer is the former Head of the Coverage Team at The Motley Fool. He was a full-time Motley Fool employee from 2012-2025 and is a former advisor and analyst for multiple Motley Fool services. Matt's articles and analysis have been published around the world and his views have been cited in worldwide publications from the Financial Times and The New York Times to the Toronto Star and Germany's Focus Money. He has appeared to offer analysis on a variety of outlets including CNBC and NPR. Matt is the co-author of The Astonishing Collapse of MF Global as well as the creator and former co-host of The Motley Fool's Industry Focus podcast.