Barron’s Take

| WEDNESDAY, JUNE 29, 2011

BofA Settlement a Bullish Turn

By TERESA RIVAS | MORE ARTICLES BY AUTHOR

Saying it has set aside $14 billion for mortgage-related claims, Bank of America has removed a major longstanding hurdle.

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“The past is never dead. It’s not even past.”

Faulkner’s words referred to a fallen Southern belle, but could just as easily apply to Bank of America, which continues to pay for its past sins during the housing boom.

Before the market’s open, Bank of America (ticker: BAC) announced that it had agreed to pay $8.5 billion in a settlement tied to mortgage-backed securities that went sour during the financial crisis. The payout, the largest of its kind in the industry to date, is greater than the bank’s total profits since 2008. Beneficiaries of the settlement include large players like BlackRock (BLK) and MetLife (MET).

via Bank of America’s $14 Billion Mortgage Settlement Should Boost Stock – Barrons.com.