Is Bank of America (BAC) in trouble?

Is Bank of America (BAC) in trouble? Their stock is at lows, and while Warren Buffett bought shares around $7, the stock hasn't made much of a recovery. Do you think Bank of America could have some more serious underlying issues? Why has their stock plummeted and will the company recover?

Long suffering Bank of America (ticker: BAC) shareholders have more reason to cheer.

The nation's largest retail bank said it earned $2 billion in the fourth quarter, compared to a loss of $1.2 billion a year earlier, as per-share profit totaled 15 cents, in line with estimates.

Bank of America shares, which have surged 38% since hitting a 52-week low last month, tacked on Thursday another 4.5%, or 31 cents, to $7.11.

Net interest income, the spread between interest paid and earned, improved. And importantly, the Tier 1 common equity ratio, a measure of financial strength, increased to 9.86%, up 1.21 percentage points from the previous quarter.

New Update of BAC ! The stock price is discounting a 16% cut in expenses this year, better than the firm expectation of 10%, say the CS analysts, as the MSR sales won't begin impacting costs until 2014. Better values in the big bank sector are C, JPM, and USB.

Well I don't think so, what you feel??