After years of back-and-forth, Bank of America (NYSE:BAC) and MBIA (NYSE:MBI) have settled the dispute over issues stemming from legacy Countrywide practices. The Charlotte, N.C.-based bank agreed to pay $1.6 billion in cash, as well as engage in some other actions. Both stocks soared after the deal was announced on Monday.

In this video, Motley Fool banking analysts Matt Koppenheffer and David Hanson grade the settlement for the two parties and tell viewers what it means for investors going forward.