How to explain the surge in Bank of America's (BAC Bank of America news) stock? One interpretation is that the controversy hanging over previous CEO Ken Lewis was so dense that the coming of Brian Moynihan warranted a honeymoon of sorts. And that has pushed the stock's performance as of late past its peers, the likes of Citigroup (C Citigroup news) and others.

CNNmoney.com notes there have been other bits of good news. The approval by Judge Jed Rakoff--finally--of the bank's new and improved settlement with the SEC (SEC news) clears away a big issue, though the specter of Andrew Cuomo still haunts it. It would be hard to deny, however, the fundamental issues that are still worrisome. The bank's exposure to credit card (credit card news) and mortgage debt remains troubling, as is the surge in outstanding common shares and the still middling economy. This could be a frothy sort of bounce, especially when you note the bank faces some tough earnings comparisons in the quarters ahead. The run-up might well have reflected short covering. You get the feeling the bears are not quite ready to give up. 

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