Sometimes all I want is a simple graph. With this in mind, the figure below breaks down the largest legal settlements that Bank of America (NYSE:BAC) has racked up since purchasing Countrywide Financial in 2008.
All told, the total amount is in the neighborhood of $45 billion, stemming primarily from the billions of dollars in subprime mortgages originated by Countrywide in the lead-up to the financial crisis.
While this is unquestionably a huge number -- as B of A's CEO Brian Moynihan said: "There aren't many days when I get up and think positively about [that deal]" -- the nation's second largest bank by assets isn't out of the woods yet. As best as I can tell, there remain three considerable hurdles that we presently know of.
The first is the still-pending $8.5 billion settlement overseen by Bank of New York Mellon (NYSE:BNY) as trustee for the RMBS trusts -- the underlying investors in the action reads like a Who's Who of financial firms including PIMCO, Blackrock (NYSE:BLK), and MetLife (NYSE:MET), among others. The second is the ongoing case between B of A and monoline insurer MBIA (NYSE:MBI) -- MBIA was the largest private-label bond insurer prior to the financial crisis. And the final one concerns a multiparty action, brought by a variety of investors in Countrywide issued mortgage-backed securities, that's making its way through a federal district court in California.
Thus, even though the massive settlements from earlier this week go a long way toward removing the uncertainty surrounding B of A's remaining liability, material outstanding claims remain.
John Maxfield owns shares of Bank of America. The Motley Fool recommends BlackRock. 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.