BofA torpedoed in fixed income but mortgage book improves

Warren Buffett may not get a nasty surprise over his cornflakes this morning – but other Bank of America investors might. BofA has released its first results since Buffett’s Berkshire Hathaway invested $5bn in a private issue of its preferred stock on August 25. The headline news is good – the bank made a $7.4bn pretax profit in the third quarter. But it was all down to exceptional items, leaving the core business with a loss.