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BANK OF AMERICA

Jan 20, 2020 351

HISTORY:

Bank of America Corporation was formed in the year 1998 merger of NationsBank Corporation and BankAmerica Corporation. It operates as the third largest bank in the United States with more than 4,200 retail outlets in 21 states and the District of Columbia. The company ranks first in terms of deposit market share in Texas, California, Florida, Georgia, North Carolina and Washington. Bank of America has four major business segments, including Consumer Banking, Commercial Banking, Corporate and Global Investment Banking and Asset Management. Through these segments, the firm offers financial products, services and solutions to customers in 48 states and 38 countries around the world.

BankAmerica was founded in the year 1904 as the Bank of Italy. Amadeo Peter Giannini founder of BankAmerica, became one of the most important person of American banking in the 20 th century. Giannini, an Italian immigrant, was seven years old when his father died. By the age of 21, he had earned half the ownership of his stepfather's product business. He married a wealthy family, and the benefits of the product business, combined with shrewd real estate investments in San Francisco, allowed him to retire at the age of 31.His retirement was brief. When his father-in-law died, he left a considerable estate, including the address of a small San Francisco savings bank. When Giannini failed to persuade the bank's board that the poor but hard-working people who had recently come to the West Coast were a good loan risk, he resigned and decided to create his own bank, a bank for "Never used one ".The year 1904 was inauspicious; An economy up and down and the financial irresponsibility of many banks during this period gave the bank such a bad name that the government was finally pushed to create the Federal Reserve system in 1917. But Giannini's bank was atypical. Its policy of lending money to average citizens was unheard of in the early 1900s, when most banks lent only on a wholesale basis to commercial clients or wealthy individuals.

Giannini raised capital for his new bank, called the Bank of Italy, by selling 3,000 shares, mostly to small investors, none of which had more than 100 shares. Although Giannini never had a dominant shareholding, the extreme loyalty of these and subsequent shareholders allowed him to govern the bank as if he were closely held. Its innovative policies made the Bank of Italy and its successor.During the famed San Francisco earthquake of 1906, Giannini rescued $ 80,000 in cash before the bank building burned by hiding it in a cart full of oranges and taking it home for safekeeping. With this money he reopened his banking days before any other bank and began lending a counter of planks and barrels on the promenade, urging the demoralized San Franciscans to rebuild an even better city.


CHAIRMAN: Brian Moynihan