Tomahawk, WI 04/01/2014 (Basicsmedia) – It seems Bank of America Corp (NYSE: BAC)’s litigation-related troubles are not yet over.

$50 Billion Question

Are the mortgage-related litigations over for Bank of America? “Not so fast,” seems to be the right answer as more cases continue to be filed by the government against the banks. In the latest instance, a federal judge has ruled in favor of Bank of America and recommended that a lawsuit brought against it by the government be dismissed. The suit accuses Bank of America of misleading Wachovia Corp — now a part of Wells Fargo & Co (NYSE:WFC) — and the Federal Home Loan Bank of San Francisco about risks in the $855 million mortgage securities offering.

But this is the civil part of the lawsuit. There is a related lawsuit brought by the Securities Exchange Commission (SEC) and a federal judge recommended last Monday that the SEC should pursue a lawsuit in the affair.

So the legal saga continues.

On Wednesday, Bank of America Corp (NYSE: BAC) agreed to pay $6.3 billion to Fannie Mae and Freddie Mac to resolve lawsuits about the sale of defective mortgage securities to Freddie and Fannie.

Since 2010, Bank of America has agreed to pay a grand total of more than $50 billion to settle legal and other claims arising from the housing and financial crisis of 2008.

Passing Stress Tests

But apart from these lingering troubles from the 2008 crisis, Bank of America and its peers are doing well. The Fed administered Dodd-Frank stress test results came out on March 20 and 29 out of 30 large banking institutions were shown to be in fine financial shape and prepared to meet major downturns in the economy such as a severe recession and huge spike in the unemployment rate and other negative economic data.

Bank of America Corp (NYSE: BAC) is also taking internal steps — such as branch closings and manpower rationalization — to become a better banking institution. Its ‘Safe Balance’ initiative is likely to prove a major hit with its customers. It has a strong online presence with 30 million users of its online banking website.

So, in the long-term, this stock is worth a ‘buy.’

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.