Introduction to the Bank of America

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Bank of America is the largest bank in the United States. According to the 2010 annual report, the bank has more than $150,450 billion in revenue and the net income is $2,238 billion. This is easily the largest employer in the banking sector as well with more than 286,951 employees in 2010. The bank is quite healthy as the total assets are worth more than $2.265 trillion, with equity just $231.444 billion.

Bank of America is not only included in the top five companies of the United States, but also the second largest company that is not related to the oil business. According to the Forbes and Fortune 500, BOA is the third best organization working in the banking sector in the world. The share of banks in the local deposit market is more than 12.2% too. The BOA holding includes the prestigious institutions like Merrill Lynch too, which it acquired in 2008.

BOA was founded in 1904 by Amadeo Giannini as Bank of Italy. This humble organization in San Francisco aims to provide banking services to immigrants. In 1906 San Francisco was struck by an earthquake. The fire burned the building of the organization, but the bank started working soon after with the funds in the vaults that survived. The beginning of the banking sector was quite simple.

The first office of BOA was quite humble as there were only two makeshift tables being created by the barrels. The bank grew and in 1918 the bank changed its name to Bank of America and Italy. The next chapter in BOA history happened in 1927 when it became the largest institute after consolidation with Liberty bank of Los Angles

The later years saw the growth of BOA in the western states with California as base. The BOA started working as an insurance institution as well at this time too. In 1956 the insurance business was separated as a result of the Banking & Holding Act. Transamerica was the insurance partner of BOA which kept working in that business after separation.

BOA was the first bank to introduce credit cards in a massive way with Visa in 1975 with the help of a consortium of other banks. In the 1980s, BOA moved beyond California and started working as a national bank. The prestige and holding of the company also increased after acquiring the companies like Bancorp.

The bank dealt with many problems including the major losses in 1983 as well. The result of the next few years of struggle led to the sale of the organization to the Deutsche Bank in 1987. The next important step was the merger of BOA and Nations Bank which was extremely successful in generating the largest banking organization.

Source by Chris J Anderson

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