Bank of America Corporate Center
Category: History & Society
- In full:
- Bank of America Corporation
- Date:
- 1904 - present
- Ticker:
- BAC
- Share price:
- $33.43 (mkt close, Dec. 22, 2023)
- Market cap:
- $264.56 bil.
- Sector:
- Finance
- Industry:
- Banks
- CEO:
- Brian T. Moynihan
- Headquarters:
- Charlotte
Recent News
Dec. 19, 2023, 6:12 AM ET (Fortune)
Dec. 18, 2023, 7:05 AM ET (MSN)
Dec. 14, 2023, 1:32 AM ET (Reuters)
BofA's former head of wealth, private bank Keith Banks to retire
Dec. 13, 2023, 6:00 AM ET (Yahoo News)
Carolina Panthers reach stadium naming rights agreement with Bank of America
Dec. 12, 2023, 1:32 AM ET (Reuters)
Bank of America, one of the largest banking and financial services brands and corporations in the United States. It was formed through NationsBank’s acquisition of BankAmerica in 1998. Bank of America is headquartered in Charlotte, North Carolina.
The bank’s history dates to 1904 when Amadeo Peter Giannini opened the Bank of Italy in San Francisco. It eventually developed into the Bank of America and was for a time owned by Giannini’s holding company, Transamerica Corporation. It issued the first bank credit card, BankAmeriCard, in 1958. (The first universal credit card, which could be used at a variety of establishments, had been introduced by the Diners’ Club, Inc., in 1950.)
In 1968 the newly named BankAmerica Corporation was organized in Delaware as a holding company for Bank of America NT & SA and other financial subsidiaries. One of BankAmerica’s most significant acquisitions was the 1983 purchase of Washington state bank Seafirst Corporation, which was the biggest U.S. interstate bank merger to date. After purchasing its major competitor in California, Security Pacific Corporation, in 1991, Bank of America became the first bank to offer coast-to-coast operations in the United States. It expanded into New England with the acquisition of FleetBoston Financial Corporation in 2004, and by the early 21st century it was operating more than 5,500 bank branches in more than 20 U.S. states and conducting corporate and investment banking in numerous countries worldwide. The firm enlarged its credit-card business by acquiring National Processing, a transaction-processing firm, in 2004, and its merger with MBNA Corporation in 2006 made Bank of America a leading issuer of credit cards. To gain a strong position in the wealth-management business, Bank of America in 2007 acquired U.S. Trust Corporation, an investment firm that manages investments for high-net-worth individuals.
As the global financial crisis emerged in 2008, numerous institutions began to struggle, notably Countrywide Financial, the largest American mortgage lender, and Merrill Lynch & Co., Inc. That year Bank of America bought both companies, and the acquisitions proved costly. In January 2009 Bank of America announced that it would receive $20 billion in U.S. government aid and an additional $118 billion in guarantees against bad assets incurred as a result of the acquisition of Merrill Lynch. Bank of America subsequently faced a number of state and federal lawsuits regarding claims that it had defrauded investors. In 2012 it agreed to pay $2.43 billion to settle a class-action suit involving allegations that the company had failed to disclose to investors the true financial health of Merrill Lynch. Also coming under scrutiny were the mortgage operations of both Bank of America and Countrywide. In particular, they were accused of having made risky mortgage loans and then misrepresented the quality of those loans to investors. In 2013 the U.S. government sued Bank of America for financial fraud, and the following year the company agreed to pay $16.65 billion.
This article was most recently revised and updated by Amy Tikkanen.
I'm an enthusiast deeply immersed in the world of banking and finance, particularly the history and evolution of major financial institutions. My knowledge spans a wide range of topics, from the intricate details of banking operations to the broader economic landscape. Now, let's delve into the fascinating narrative of the Bank of America, exploring its roots, pivotal moments, and recent developments.
Bank of America Corporation Overview: Bank of America, ticker symbol BAC, is a prominent banking and financial services corporation headquartered in Charlotte, North Carolina. It holds a significant position in the United States and has a market capitalization of $264.56 billion as of December 22, 2023, with a share price of $33.43 at market close.
Historical Origins: The roots of Bank of America trace back to 1904 when Amadeo Peter Giannini established the Bank of Italy in San Francisco. Over time, this institution evolved into the Bank of America. The crucial turning point came in 1998 when NationsBank acquired BankAmerica, forming the entity we know today as Bank of America.
Key Milestones:
- 1958: Bank of America issued the first bank credit card, BankAmeriCard, marking a significant milestone in the financial industry.
- 1968: The institution was reorganized as the BankAmerica Corporation, serving as a holding company for Bank of America NT & SA and other financial subsidiaries.
- 1983: Bank of America made a substantial acquisition by purchasing Washington state bank Seafirst Corporation, the largest U.S. interstate bank merger at the time.
- 1991: The acquisition of Security Pacific Corporation allowed Bank of America to become the first bank with coast-to-coast operations in the United States.
- 2004: Expansion into New England occurred with the acquisition of FleetBoston Financial Corporation.
Challenges and Acquisitions: The global financial crisis of 2008 presented challenges, leading to Bank of America's acquisition of Countrywide Financial and Merrill Lynch & Co., Inc. These acquisitions, while significant, proved to be costly. In 2009, the bank received substantial government aid and guarantees against bad assets.
Legal Scrutiny and Settlements: In the aftermath of the financial crisis, Bank of America faced legal challenges and lawsuits, particularly concerning the acquisition of Merrill Lynch. The bank agreed to pay significant settlements, including $2.43 billion in 2012 and $16.65 billion in 2014, related to allegations of financial fraud and failure to disclose the true financial health of Merrill Lynch.
Recent Developments: Recent news as of December 2023 indicates that Bank of America warned of a mild recession earlier in the year. However, it now suggests that the Federal Reserve is close to achieving a 'soft landing.' Additionally, there have been reports on the bank's resilience throughout 2023, weathering challenges in the banking sector.
In conclusion, Bank of America stands as a financial powerhouse with a rich history, marked by strategic acquisitions, legal challenges, and a continuous presence in shaping the landscape of banking and finance in the United States.
