Bad loans still a threat at B of A

With apologies to Buffalo Springfield, there's something happening here. What it is ain't exactly clear. But if Bank of America (BAC) first quarter numbers are sustainable, then it may not be long before the government is out of the business of bailing out banks. That's because Bank of America reported a $4.24 billion profit -- its 44 cents earning per share was 40 cents a share more than the 4 cents a share the average analyst expected.

How did Bank of America achieve this feat? Like its peers, the bank benefited from gains on home refinancing -- on April 9 President Obama said that refinancings rose about 88 percent in the last month -- and trading. But don't get too excited because Bank of America expects more credit problems, which is why it added $6.4 billion to its loan loss reserves.