Introduction to Bank of America

October 18, 2021 by No Comments

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 of revenue and the net income is $ 2.238 billion. This is easily the largest employer in the banking sector, with more than 286,951 employees in 2010. The bank is quite healthy as total assets are worth more than $ 2.265 trillion, with a registered capital of only $ 231.444 billion. .

Bank of America is not only included in the top five companies in the United States, but also the 2nd largest company that is not related to the oil business. According to Forbs and the Fortune 500, BOA is the third best banking organization in the world. Banks’ participation in the local deposit market also exceeds 12.2%. The BOA holding also includes prestigious institutions such as Merrill Lynch, which it acquired in 2008.

BOA was founded in 1904 by Amadeo Giannini as the Bank of Italy. This humble organization in San Francisco with the goal of providing banking services to immigrants. In 1906 during the San Francisco it was hit by an earthquake. The fire burned down the organization’s building, but the bank began working shortly after with the funds in the surviving vaults. The start of the banking sector was quite straightforward.

BOA’s first office was quite humble as there were only two makeshift tables 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’s history occurred in 1927 when it became the largest institute after consolidation with Liberty Bank of Los Angeles.

The last few years saw the growth of BOA in the western states with California as a base. The BOA also began working as an insurance institution at this time. In 1956 the insurance business was separated as a result of the Banking and Participation Law. Transamerica was BOA’s insurance partner, which continued to work in that business after the separation.

BOA was the first bank to introduce credit cards en masse with Visa in 1975 with the help of a consortium of other banks. In the 1980s, the BOA moved beyond California and began operating as a national bank. The prestige and participation of the company also increased after the acquisition of companies such as Bancorp.

The bank faced many problems, including major losses in 1983. The result of the struggle in the following years led to the sale of the organization to Deutsche Bank in 1987. The next important step was the merger of BOA and Nations Bank. which was very successful in generating the largest banking organization.

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