Is Bank of America Well-Positioned for the Future?

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With shares of Bank of America (NYSE:BAC) trading around $15, is BAC an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Bank of America is a financial institution serving individual consumers, small- and middle-market businesses, corporations, and governments with a range of banking, investing, asset management, and other financial and risk management products and services. With its banking and various non-banking subsidiaries throughout the United States and international markets, the company provides a range of banking and non-banking financial services and products through several business segments: consumer and business banking, consumer real estate services, global banking, global markets, global wealth, investment management, and other.

Bank of America agreed to pay $404 million to Freddie Mac to settle claims related to bad mortgages the bank sold to the housing finance giant, the companies said. The settlement resolves all disputes between the two firms related to home loan deals during the subprime housing boom, BofA said. The payment, less a credit of about $13 million toward the settlement for loans BofA had already repurchased from Freddie Mac, releases the bank from potentially being forced to repurchase about 716,000 mortgages originated from 2000 to 2009.

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