According to these bullish firms, though Bank of America has delivered disappointing 1Q11 core operating results, it has addressed legacy mortgage issues to some extent in order to strengthen its future performance. The firms were particularly appreciative of increasing reserves and resolving Government Sponsored Entities (GSE) related claims. These firms believe that weak spread revenue, lower mortgage production revenue, expenses related to foreclosure and regulatory reform, downward tending margin and Federal Reserve’s objection to the company’s proposed capital deployment will drag down earnings, but ongoing improvement in loan and credit quality as well as better-than-expected economic growth will power the results. These firms also believe that Bank of America has created a strong consumer banking franchise through both internal growth and acquisitions over the last decade. With leading market share in some of the more attractive regions of the country such as the Southeast, Northeast, and the West, a collection of solid businesses, and effective use of scale to introduce new products in the retail bank channel, Bank of America is poised to excel in an improved economy, which will expectedly materialize going forward.