Bank of America took yet another step away from death's doorstep with second-quarter results that showed credit quality improving, expenses falling and improved net profit. But it isn't ready for the Olympics.

The bank has yet to convincingly shake worries over the mortgage mess that resulted from its acquisition of Countrywide Financial. Those returned to the fore Wednesday after BofA said demands it repurchase flawed mortgages jumped by more than 40% in the quarter to $22.7bn.