Monday, December 1, 2008
Bank of America: History,Overview,Brief
My fortune 500 company is on Bank of America and it will be referred to as (BOA) or Bank of America throughout the contents that follow:
Bank of America is more than a financial institution. According to BOA's frequently asked questions, "BOA provides economic opportunities for low- and moderate-income customers and communities through loans and investments, Bank of America does business in retail and commercial banking and offers a number of affordable mortgages(http://www.bankofamerica.com/community/index.cfm?template=cdb_faqs#top)."
According to www.didyouknow.com "Bank of America started as Bank of Italy. Additionally,"Bank of America Corporation was formed in the 1998 merger of NationsBank Corporation and BankAmerica Corporation(http://www.answers.com/topic/bank-of-america-corporation)." "Amedeo Giannini, son of Italian immigrants to the US, started the Bank of America in a converted saloon in San Francisco at 9 am on Monday, 17 October 1904. On the first day, 28 deposits totalled $8,780."(http://www.didyouknow.cd/banks.html) By the late 1920s, Amadeo Giannini was interested in expanding Bank of Italy and approached Orra E. Monnette, president and founder of the Los Angeles-based Bank of America, about a potential merger. By 1929 the organizations had merged taking the title Bank of America (Bank of America, 2006).(http://www.associatedcontent.com/article/1126641/the_history_of_bank_of_america.html)
According to the associatedcontent.com website, "During World War II era, Bank of America became one of the largest banks in California due to the fact that many soldiers had their paychecks deposited directly into banks owned by the company. The traffic undertaken by the banks was so significant that the organization chose to develop a myriad of different technological innovations to improve processing in the organization." Furthermore,"the changes that occurred at the Bank of America during this time served as a basis to revolutionize the banking industry."(http://www.associatedcontent.com/article/1126641/the_history_of_bank_of_america.html)
BOA like many other banks currently had some rough times,"Despite a rocky decade, by the 1990s stock in Bank of America had rebounded and Bank of America was again regaining ground."In 1992, Bank of America acquired its most significant competitor Security Pacific Corp. Throughout the course of the 1990s, Bank of America continued to expand, acquiring banks all over the United States (http://www.answers.com/topic/bank-of-america-corporation)."
Also, "Bank of America stepped up its international presence, becoming one of only four U.S. banks with significant impact on international lending(http://www.answers.com/topic/bank-of-america-corporation)."This is a good step that BOA took in order to improve their credibility.
But did you know, "BOA is one of the three largest banks in the US by assets (along with Citigroup and JPMorgan Chase), Bank of America boasts the country's most extensive branch network, with more than 6,100 locations covering some 30 states from coast to coast. Its core services include consumer and small business banking, credit cards, and asset management. Recently,"In 2008 Bank of America arranged to pay some $50 billion in stock for Merrill Lynch, which has been crippled by the ongoing credit crisis"(www.answers.com).
As one can see, BOA has had a long journey to becoming a widely recognized institution. It amazes me the history that a company can have. I too bank with BOA and when I researched this information it took me by surprise in many ways. I learned the true history of the fortune 500 company as well as, the college student section, which has helped me tremendously in financial decision making.
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