The only problem with Bank of America Corp(NYSE:BAC) stems from 5 years ago (mortgage lending and securitization activities during the financial crisis of 2008). How long will investors keep trading the stock at a discount when book value is $20?All of the other major big banks, except for Wells Fargo are experiencing mortgageissues stemming from the housing bubble. It seems like the bank cannot catch abreak! An analysis of the banks most recent earnings showed that profits are being realized through effective cost cutting initiatives. For example, net income rose 63% in the second quarter compared to a year ago. The wealth management side increased assets under management and fees. 40% of the bank’s balance sheet is tide to the housing market, which is currently experiencing a comeback. Current trends are in favor of the bank. Long term, this stock is a winner as evident by Warren Buffett’s $5 billion investment in the preferred shares. There is no better vote of confidence than Warren Buffett.