Unlike Citigroup and JPMorgan Chase, Bank of America was not able to deliver a significant upside earnings surprise for the second quarter. Instead, the bank hit analysts' expectations pretty much on the nose.

It reported a loss of 90 cents a share, which was mostly accounted for by some massive charge-offs for bad credits and settlements. The collective $20 billion in pre-tax mortgage charge-offs was accounted for by the much-discussed $8.5 billion settlement with 20 bond investors, $5.5 billion to cover other loans, and $6.4 billion in related charges. If it weren't for those big hits, the bank would've earned $3.7 billion in the second quarter.

The big issue continues to be whether the latest mortgage-related charge-offs represent a definitive move to put the financial crisis behind it. This has become something of a perennial question. The bank would like to think as much, but there are still question marks. For example, there's a chance that the $8.5 billion deal may not be approved by courts.

There was also some good news. The underlying consumer business seems to be faring okay. And the investment banking and trading business fared surprisingly well. Global Banking and Markets reported record investment banking fees in the second quarter of 2011 of $1.6 billion, up from $898 million a year ago, excluding self-led deals. This marks the highest investment banking fees since the acquisition of Merrill Lynch. FICC revenues surged to $2.7 billion, up $467 million, as trading in everything but mortgages fared well.

For more:
- here's the release

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