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Banc of America Securities (1998–2008)

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Adapted from the English Wikipedia article Banc of America Securities (1998–2008), available under CC BY-SA 4.0Updated 8 August 20251 source
Bank of America Corporation
Company typePublic
IndustryFinancial services, Investment banking
Founded1998; 28 years ago (1998) (merger of NationsBank and original Bank of America)
Headquarters
Charlotte, North Carolina
,
United States
Area served
Worldwide (over 40 countries)
Key people
Brian Moynihan (Chairman and CEO)
ProductsCommercial banking, wealth management, investment banking
Number of employees
211,000+
ParentNone
Websitebankofamerica.com

The Bank of America Corporation (commonly known as Bank of America and abbreviated as BAC or BoA) is a U.S.-based multinational financial services and investment banking holding company. Its main headquarters are located at the Bank of America Corporate Center in Charlotte, North Carolina, with additional investment banking and support offices situated in Manhattan. Established in 1998 through the merger of NationsBank and the original Bank of America, it stands as the second-largest banking entity in both the United States and worldwide by market capitalization, surpassed only by JPMorgan Chase. As one of the Big Four American banks and among the eight systemically important financial institutions designated nationally, Bank of America manages approximately 10% of all U.S. bank deposits, competing directly with JPMorgan Chase, Citigroup, and Wells Fargo. Its primary financial offerings encompass commercial banking, wealth management, and investment banking services.

The institution’s historical roots extend back to 1784 through its oldest branch, which originated from the federally chartered Massachusetts Bank. Another foundational lineage derives from the Bank of Italy, created in 1904 by Amadeo Giannini to provide banking services to Italian immigrants who faced discrimination. Initially based in San Francisco, Giannini expanded the bank through a series of acquisitions, ultimately evolving it into what became Bank of America.

Legislative changes in federal banking during the 1950s accelerated growth for its predecessor institutions. Following significant losses amid the 1998 Russian financial crisis, BankAmerica was acquired by NationsBank, headquartered in Charlotte, for $62 billion—a record-setting bank acquisition at that time—resulting in the formation of today’s Bank of America Corporation. Later mergers broadened its commercial banking reach and incorporated Merrill Lynch for wealth management alongside Bank of America Merrill Lynch (now BofA Securities) for investment banking by 2009.

Both Bank of America and Merrill Lynch hold substantial shares within wealth management and investment banking sectors. The investment banking division is ranked among the "Bulge Bracket" banks as the third-largest worldwide as of 2018. Its wealth management branch oversees $1.08 trillion in assets under management (AUM), positioning it as the second-largest global wealth manager following UBS. The commercial banking segment serves 46 million consumer and small business clients through 4,600 branches and 16,000 ATMs across more than 40 countries, although retail branches are not present in every U.S. state.

Due to its broad market presence and operations, Bank of America has faced numerous lawsuits and regulatory probes related to mortgage practices and financial disclosures since the 2008 financial crisis. As of August 2018, its market capitalization was $313.5 billion, making it the 13th largest company worldwide and the sixth largest publicly traded American firm by revenue, with reported sales totaling $102.98 billion that year. It was ranked No. 25 on the 2020 Fortune 500 list and No. 6 on Forbes' Global 2000 rankings in 2023. In 2018, Euromoney Institutional Investor recognized it as the "World's Best Bank."

History

The origins of Bank of America, Los Angeles date back to its establishment in California in 1923. In 1928, it was acquired by the Bank of Italy based in San Francisco, which adopted the Bank of America name two years afterward.

The eastern segment of the bank's lineage can be traced to 1784 with the founding of Massachusetts Bank, recognized as the first federally chartered joint-stock bank in the United States. This institution eventually became part of FleetBoston, which merged with Bank of America in 2004. Meanwhile, Commercial National Bank was founded in Charlotte in 1874 and combined with American Trust Company in 1958 to form American Commercial Bank. This entity was renamed North Carolina National Bank following a merger with Security National Bank in 1960. Later, in 1991, it merged with C&S/Sovran Corporation, resulting in the creation of NationsBank.

The central branch's history begins in 1910 when Commercial National Bank joined forces with Continental National Bank of Chicago to establish Continental & Commercial National Bank. This institution later evolved into Continental Illinois National Bank & Trust.

Bank of America

The foundation of Bank of America dates to October 17, 1904, when Amadeo Giannini launched the Bank of Italy in San Francisco. In 1922, the Bank of America, Los Angeles was created with Giannini holding a minority stake. The two banks merged in 1928 and consolidated additional assets, forming what would become the largest banking institution in the United States.

In 1918, Giannini established Bancitaly Corporation to acquire shares in multiple New York City and international banks.

Giannini merged his bank with Bank of America, Los Angeles, led by Orra E. Monnette, in 1928. On November 3, 1930, the Bank of Italy was renamed Bank of America National Trust and Savings Association, becoming the only U.S. bank to hold that title at the time. Giannini and Monnette served as co-chairs for the unified company.

Expansion in California

Following California legislation allowing branch banking after 1909, Giannini became a pioneer by opening the first branch outside San Francisco that same year in San Jose. By 1929, Bank of America operated 453 branches throughout California with assets surpassing US$1.4 billion. The original San Jose branch from 1909 is preserved at History Park, and the 1925 Bank of Italy Building remains a prominent landmark downtown. Giannini’s vision was to establish a national bank by expanding across western states and entering the insurance industry through his holding company, Transamerica Corporation.

In 1953, regulatory authorities mandated the separation of Transamerica and Bank of America under the provisions of the Clayton Antitrust Act. The later enactment of the Bank Holding Company Act of 1956 further restricted banks from owning non-banking subsidiaries such as insurance firms, leading to the division between Bank of America and Transamerica, which retained its insurance operations. Additionally, federal regulators prohibited Bank of America's interstate banking activities; its operations outside California were spun off into a distinct entity that eventually became First Interstate Bancorp before being acquired by Wells Fargo and Company in 1996. It was not until regulatory reforms during the 1980s that Bank of America resumed expanding its consumer banking services beyond California.

Technological innovations facilitated linking credit cards directly to bank accounts. In 1958, Bank of America introduced BankAmericard, which was rebranded as Visa in 1977. Despite initial financial setbacks due to defaults, this card quickly captured significant market share both within California and internationally. Competing regional credit card groups formed Interbank in 1966; this organization evolved into Master Charge and subsequently became known as Mastercard by 1979.

Between February 1970 and September 1971, there were 66 attacks on Bank of America branches across California, including bombings and arson incidents that caused approximately $500,000 in damages. Most notably, a fire at the Isla Vista branch occurred amid a riot in February 1970.

Expansion Beyond California

In response to the Bank Holding Company Act of 1956, BankAmerica Corporation was established to oversee Bank of America along with its affiliated entities.

Bank of America ventured outside California for the first time in 1983 by acquiring Seattle-based Seafirst Corporation, with leadership involvement from Stephen McLin. Seafirst had encountered financial distress due to problematic loans in the oil sector. The BankAmerica brand maintained the Seafirst identity until its 1998 integration with NationsBank.

During 1986–87, substantial losses stemming from non-performing loans in the Third World resulted in the dismissal of CEO Sam Armacost. His predecessor, A. W. (Tom) Clausen, was reinstated to lead the company. These financial setbacks triggered a sharp drop in BankAmerica's stock value, exposing it to a hostile takeover attempt by Los Angeles-based First Interstate Bancorp in 1986. The threat was countered primarily through divestments, including the sale of FinanceAmerica to Chrysler, Charles Schwab and Co. back to its namesake, and Bank of America Italy to Deutsche Bank. By 1992, BankAmerica's share price had recovered significantly.

The year 1992 marked BankAmerica’s most substantial acquisition at that point with the purchase of Security Pacific Corporation, which expanded its banking footprint across California, Arizona, Idaho, Oregon, and Washington. To comply with antitrust regulations, certain Washington branches were sold off to West One Bancorp (now U.S. Bancorp) and KeyBank to avoid market concentration. Later that same year, BankAmerica entered the Nevada market through acquiring Valley Bank of Nevada.

BankAmerica broadened its reach into Chicago by acquiring Continental Illinois National Bank and Trust Co. in 1994. Due to stringent branch banking restrictions in Illinois, Bank of America Illinois initially operated as a single-branch bank. The company also transferred its national lending division to Chicago to bolster regional operations.

These mergers reinstated BankAmerica as the largest U.S. bank holding company by deposits until it was overtaken by North Carolina-based NationsBank Corporation in 1997 and subsequently by First Union Corp. in 1998.

In terms of capital markets, the acquisition of Continental Illinois strengthened BankAmerica’s leveraged finance capabilities, enabling its broker-dealer BancAmerica Securities (previously BA Securities) to develop into a comprehensive investment firm. Further expanding its investment banking presence in 1997, BankAmerica acquired San Francisco’s Robertson Stephens for $540 million—a firm specializing in technology sectors—which was merged into BancAmerica Securities and rebranded as "BancAmerica Robertson Stephens."

NationsBank and BankAmerica Merger

In 1997, BankAmerica extended a $1.4 billion loan to investment firm D. E. Shaw & Co. for managing various banking operations; however, D.E. Shaw incurred major losses amid the 1998 Russian financial crisis. The following year, NationsBank based in Charlotte executed the largest bank acquisition at that time by purchasing BankAmerica.

Although NationsBank was technically the surviving entity, the combined organization adopted the more widely recognized Bank of America name. The holding company was renamed Bank of America Corporation, while NationsBank, N.A. merged with Bank of America NT&SA to create Bank of America, N.A., which serves as the legal banking institution.[1] Operating under Federal Charter 13044—originally issued to Giannini's Bank of Italy in 1927—the merged company is headquartered in Charlotte and retains NationsBank’s pre-merger stock price history. NationsBank’s president, chairman, and CEO Hugh McColl assumed those same leadership roles for the new entity.

By 1998, the consolidated Bank of America held assets totaling $570 billion and operated 4,800 branches across 22 states. Federal regulators mandated divestiture of only 13 branches located in New Mexico, which were sold to BOK Financial Corporation and operated under the name "Bank of Albuquerque." Additionally, NationsBanc Montgomery Securities was rebranded as Banc of America Securities during that year.

Banc of America Securities

Banc of America Securities LLC (BAS) served as Bank of America's investment banking arm from its inception in 1998 until its 2008 integration with Merrill Lynch. Headquartered in New York City, BAS engaged in both domestic and global equity and investment banking activities. It was registered as a broker-dealer with the SEC and held memberships in the NYSE and NASD. The designation "Banc" indicated that BAS was not a traditional bank, and its assets were not protected by FDIC insurance.

Established in 1998 following a model first adopted by Citigroup, BAS merged corporate lending with investment banking services. Its leading divisions included high-yield debt underwriting, Leveraged Finance, and various sector coverage groups such as Healthcare, Consumer & Retail, Media & Telecom, Financial Institutions, Real Estate, and Gaming. The firm also operated a substantial equities and derivatives division initially overseen by John Sandleman and subsequently by Chris Innes, who became one of the youngest managing directors before launching his own hedge fund. BAS maintained close collaboration with private equity firms to fund leveraged buyouts. Senior M&A bankers were embedded within industry groups, complemented by a dedicated Mergers & Acquisitions Group and a Transaction Development Group that focused on sourcing potential deals. Additionally, the firm had prominent fixed income, currency, and commodities units.

Between 2007 and 2008, BAS reduced its international footprint by eliminating several European industry groups and downsizing banking as well as sales/trading roles across North America and Asia in preparation for the Merrill Lynch merger. On October 3, 2008, Bank of America appointed John Thain to head the combined Global Corporate and Investment Banking division; he was succeeded by Brian Moynihan in January 2009 following substantial losses incurred from acquiring Merrill Lynch. BAS’s SEC registration was officially terminated in January 2011 after full integration.

BAS maintained offices worldwide including locations in New York, Charlotte, Chicago, San Francisco, Tokyo, Frankfurt, London, and Mumbai. Ultimately, most investment banking functions consolidated at the Bank of America Tower in New York City—a $1 billion, 58-story building completed in 2009—after previously operating from multiple sites due to earlier mergers.

2005 to 2007

In 2001, Ken Lewis succeeded McColl as CEO. In 2004, Bank of America announced its $47 billion acquisition of Boston-based FleetBoston Financial—the seventh-largest U.S. bank at the time—with $197 billion in assets, over 20 million customers, and $12 billion in revenue. Following the merger, FleetBoston branches were rebranded under the Bank of America name; however, the transaction resulted in significant staff reductions.

On June 30, 2005, Bank of America declared its intent to acquire credit card giant MBNA for $35 billion; the deal was finalized on January 1, 2006 after receiving Federal Reserve approval. This acquisition positioned Bank of America as a leading issuer of credit cards domestically and internationally with over 40 million U.S. accounts and nearly $140 billion in outstanding balances under FIA Card Services.

Bank of America operated as BankBoston throughout Latin America. In May 2006, it agreed to divest its Brazilian operations to Banco Itaú—who also secured rights to acquire businesses in Chile and Uruguay. Prior to this sale, BankBoston had extensive asset management and banking services across these nations with a broad customer base and numerous branches. This transaction increased Bank of America's stake in Itaú to 11.51%, effectively marking its exit from these markets and retiring the BankBoston brand there.

On November 20, 2006, Bank of America announced it would purchase The United States Trust Company from Charles Schwab Corporation for $3.3 billion; this added approximately $100 billion in assets under management. The acquisition closed on July 1, 2007.

On September 14, 2007, after receiving Federal Reserve approval, Bank of America acquired LaSalle Bank Corporation from ABN AMRO for $21 billion—expanding its assets to $1.7 trillion. Despite initial legal obstacles in the Netherlands, the deal was finalized on October 1, 2007. LaSalle’s portfolio included previous acquisitions such as Michigan National Bank as well as ownership of the Chicago Marathon event—which Bank of America assumed responsibility for beginning that year.

This acquisition brought an additional 411 branches across Illinois, Michigan, and Indiana along with approximately 17,000 commercial clients, 1.4 million retail customers, and around 1,500 ATMs. It established Bank of America as Chicago’s largest bank with a deposit market share of 14%, surpassing JPMorgan Chase. LaSalle branches were rebranded as Bank of America on May 5, 2008.

2007–2010 (Subprime Mortgage Crisis)

Throughout the subprime mortgage crisis, under the leadership of Ken Lewis, the bank executed two significant acquisitions that defined its direction following the crisis. The institution encountered a multitude of lawsuits, culminating in settlements amounting to tens of billions.

Countrywide Financial Acquisition

On August 23, 2007, the bank revealed a $2 billion repurchase agreement involving Countrywide Financial, purchasing preferred shares with a 7.25% annual yield and securing an option to acquire common shares at $18 each.

By January 11, 2008, Bank of America declared its intention to purchase Countrywide Financial for $4.1 billion. Despite an ongoing FBI investigation into suspected mortgage fraud, the transaction finalized in July 2008, greatly enhancing the bank's mortgage lending and servicing operations. This acquisition averted Countrywide’s potential bankruptcy; at that time, it managed nine million mortgages totaling approximately $1.4 trillion.

This strategic move established Bank of America as the foremost U.S. mortgage originator and servicer, commanding between 20% and 25% of the home loan market. The acquisition involved merging Countrywide with Red Oak Merger Corporation, a Bank of America subsidiary designed to segregate Countrywide’s liabilities and shield the parent entity. Subsequently, Countrywide was rebranded as Bank of America Home Loans.

In December 2011, the Justice Department reached a $335 million settlement with Bank of America concerning discriminatory lending practices at Countrywide. A federal investigation revealed that from 2004 to 2008, qualified African-American and Latino borrowers were directed toward higher-interest subprime loans despite eligibility for prime rates.

Merrill Lynch Acquisition

On September 14, 2008, Bank of America announced an all-stock acquisition of Merrill Lynch & Co., Inc. valued at roughly $50 billion. Facing imminent collapse, Merrill Lynch’s acquisition prevented its bankruptcy. Simultaneously, Bank of America engaged in discussions to acquire Lehman Brothers, but abandoned these talks due to insufficient government guarantees; Lehman filed for bankruptcy on the same day Bank of America publicized its Merrill Lynch deal. This transaction propelled Bank of America to become the largest financial services company globally. Temasek Holdings, Merrill’s principal shareholder, briefly held a 3% stake in Bank of America but sold it at an estimated $3 billion loss in early 2009.

Shareholders approved this acquisition on December 5, 2008, with completion occurring on January 1, 2009. Initially, Bank of America planned to retain key executives from Merrill’s CEO John Thain’s team; however, after Thain’s departure, most associates exited as well, leaving only Tom Montag, head of sales and trading.

In its earnings report on January 16, 2009, Bank of America disclosed significant fourth-quarter losses at Merrill Lynch that necessitated a previously arranged government-backed capital injection. Merrill posted a $21.5 billion operating loss largely due to sales and trading activities under Montag’s leadership. The bank also revealed attempts to withdraw from the deal following these losses but was compelled by federal authorities to finalize the merger. Following this disclosure, Bank of America’s stock dropped to $7.18—the lowest level in seventeen years—resulting in market capitalization falling to $45 billion, below both the initial $50 billion offer for Merrill and down by $108 billion since announcing the merger.

CEO Kenneth Lewis testified that federal officials pressured him into completing the acquisition under threats involving his job security and regulatory repercussions. Congressional subpoenas uncovered internal emails supporting this assertion; one from Federal Reserve President Jeffrey Lacker warned that failure to close the deal would lead to management being "gone." Lewis reportedly sought written confirmation from government authorities regarding this pressure to justify the acquisition to shareholders.

The purchase established Bank of America as the leading global underwriter for high-yield debt, third-largest worldwide equity underwriter, and ninth-largest adviser in mergers and acquisitions. As credit markets stabilized, Merrill Lynch contributed $3.7 billion toward Bank of America's $4.2 billion profit by Q1 2009 and accounted for over one-quarter of profits in Q3 2009.

On September 28, 2012, Bank of America resolved a class-action lawsuit connected with the Merrill Lynch acquisition by agreeing to a $2.43 billion settlement. This case was among the earliest major securities class actions stemming from the 2008 financial crisis involving multiple financial entities and investors who had considered Bank of America stock a secure investment choice.

Federal Troubled Asset Relief Program

On January 16, 2009, the U.S. government extended $20 billion in funding to Bank of America along with a guarantee covering up to $118 billion in potential losses through the Troubled Asset Relief Program (TARP). This support was in addition to the $25 billion the bank had already received in late 2008. These funds played a crucial role in facilitating the acquisition of Merrill Lynch. Subsequently, members of Congress expressed concerns regarding the allocation of bailout money amid allegations of improper use. Former CEO Ken Lewis asserted, "We are still lending, and we are lending far more because of the TARP program," although some legislators pointed to increased loan rejections and stricter credit conditions affecting small businesses and credit card customers.

A report published on March 15, 2009, by The New York Times disclosed that Bank of America obtained an extra $5.2 billion linked to the bailout of American International Group.

In light of management difficulties and federal intervention, The Wall Street Journal uncovered that Bank of America was operating under a confidential "memorandum of understanding" (MOU) with federal regulators. This agreement required significant board restructuring and enhancements in risk and liquidity oversight. As part of compliance efforts, six directors resigned, and the bank established a Regulatory Impact Office tasked with meeting regulatory deadlines under threat of penalties for noncompliance.

On December 2, 2009, Bank of America announced it had fully repaid the $45 billion received from TARP by utilizing $26.2 billion from surplus liquidity and $18.6 billion from "common equivalent securities" (Tier 1 capital), completing repayment by December 9. CEO Ken Lewis highlighted the institution’s dedication to taxpayers and its continued role as the largest lender in the United States.

Bonus settlement

On August 3, 2009, Bank of America consented to a $33 million penalty imposed by the U.S. Securities and Exchange Commission (SEC) without admitting or denying wrongdoing related to nondisclosure of an agreement to distribute up to $5.8 billion in bonuses at Merrill Lynch. These bonuses had been approved prior to the merger but were not disclosed to shareholders during the December 2008 vote on the Merrill acquisition. The matter was initially investigated by New York Attorney General Andrew Cuomo, who condemned the timing and lack of transparency as a "surprising fit of corporate irresponsibility." Congressman Kucinich indicated that additional sanctions could be forthcoming due to Bank of America's handling of the Merrill deal. Notably, federal judge Jed Rakoff declined to approve this settlement on August 5.

During a contentious hearing on August 10, Judge Rakoff strongly condemned the bonus payments. The total disbursed amounted to $3.6 billion: $850 million guaranteed upfront while the remainder was distributed among approximately 39,000 employees averaging $91,000 each; among them, 696 individuals received over $1 million, including one who was awarded more than $33 million.

On September 14, Judge Rakoff rejected the proposed settlement and ordered preparations for trial by February 1, 2010. He emphasized that shareholders—the group harmed by nondisclosure—would bear the cost of any fine and criticized management’s involvement in determining the penalty amount. He described the proposed agreement as a "cynical relationship" benefiting both SEC officials and company executives at shareholders’ expense.

In February 2010, Judge Rakoff reluctantly approved a revised settlement imposing a $150 million fine—this time allocated solely to compensate harmed shareholders—though he characterized it as "half-baked justice" and insufficient. Concurrently, investigations continued within the United States House Committee on Oversight and Government Reform, led by chairman Edolphus Towns and its Domestic Policy Subcommittee chaired by Kucinich.

Fraud

In 2010, the U.S. government charged the bank with defrauding educational institutions, healthcare facilities, and numerous state and local government bodies through improper handling of municipal bond sale proceeds. To resolve these claims, the bank consented to a $137.7 million settlement, which included $25 million paid to the IRS and $4.5 million to the state attorney general. Former executive Douglas Campbell admitted guilt on counts of antitrust violations, conspiracy, and wire fraud, while other employees and brokers remained subject to ongoing legal actions or investigations.

On October 24, 2012, the chief federal prosecutor in Manhattan filed a lawsuit accusing Bank of America of causing taxpayers losses exceeding $1 billion by selling risky mortgages to Fannie Mae and Freddie Mac under a scheme known as 'Hustle' (High Speed Swim Lane). Nevertheless, on May 23, 2016, the Second Circuit Court of Appeals determined that the jury's verdict only supported an "intentional breach of contract" rather than fraud, citing insufficient evidence of fraudulent intent at the time mortgage agreements were signed. The litigation centered on provisions within the Financial Institutions Reform, Recovery and Enforcement Act.

Change of CEO

Ken Lewis stepped down as CEO on December 31, 2009, after relinquishing his chairman role amid controversy and legal challenges linked to the Merrill Lynch acquisition. Brian Moynihan took over as president and CEO on January 1, 2010. Under Moynihan’s leadership, credit card charge-offs and delinquency rates decreased, and Bank of America fully repaid the $45 billion it had received through the Troubled Assets Relief Program.

Downsizing (2011 to 2014)

In 2011, Bank of America announced plans to reduce its workforce by 36,000 positions with the objective of saving $5 billion annually by 2014. By December that year, Forbes placed the bank at number 91 among the largest U.S. financial institutions by assets.

The combination of regulatory pressures and sluggish economic growth hastened job cuts, with around 16,000 roles eliminated by the end of 2012—helping Project New BAC reach its target of cutting 30,000 jobs ahead of schedule. Early in 2014, Berkshire Bank acquired 20 branches from Bank of America in New York for $14.4 million. Shortly thereafter, approximately two dozen Michigan branches were sold to Huntington Bancshares, which rebranded them by September.

Bank of America redirected its strategy toward enhancing its mobile banking services. By 2014, active online users numbered 31 million while mobile users reached 16 million; concurrently, retail branch count dropped to 4,900 due to less in-person traffic. By mid-2018, mobile users had increased to 25.3 million as branch locations further declined to 4,411.

Sale of stake in China Construction Bank

In 2005, Bank of America purchased a 9% ownership interest in China Construction Bank, one of China’s Big Four banks, investing $3 billion. This represented its largest investment into China's expanding financial sector and was supported by its offices located in Hong Kong, Shanghai, and Guangzhou. The bank earned the Project Finance Deal of the Year award at the ALB Hong Kong Law Awards in 2008. In November 2011, Bank of America announced intentions to divest most of this stake. By September 2013, it had sold its remaining shares for up to $1.5 billion, finalizing its withdrawal from the Chinese market.

$17 Billion Agreement with the Justice Department

In August 2014, Bank of America reached an agreement with the U.S. Justice Department involving nearly $17 billion to resolve allegations tied to toxic mortgage-backed securities, including those linked to subprime loans. The settlement comprised $9.65 billion in penalties and an additional $7 billion allocated for relief benefiting affected homeowners, borrowers, pension funds, and local governments. Despite the substantial amount, real estate analyst Jed Kolko highlighted that this settlement represented only a small portion of the estimated $700 billion in damages impacting approximately 11 million homeowners.

Key evidence in the case was provided by whistleblowers Shareef Abdou (senior vice president), Robert Madsen (appraiser), and Edward O'Donnell (Fannie Mae official), who collectively received $170 million in rewards for their information.

DOD Community Bank

Bank of America collaborated with the United States Department of Defense to establish DOD Community Bank ("Community Bank"), delivering comprehensive banking services to military members through 68 branches and ATMs located on U.S. military bases including Guantanamo Bay Naval Base, Diego Garcia, Germany, Japan, Italy, Kwajalein Atoll, South Korea, the Netherlands, and the United Kingdom. Although managed by Bank of America, customer accounts and services are distinct; there is no interchangeability between Community Bank and Bank of America accounts. Deposits in checking and savings accounts are insured up to $250,000 by the Federal Deposit Insurance Corporation, despite none of the branches being situated within U.S. territory.

Policy Against Financing Military-Style Firearm Manufacturers

In April 2018, Bank of America declared it would discontinue funding producers of military-style firearms, such as the AR-15, citing recent mass shooting incidents and a corporate commitment to contribute to reducing gun violence.

Resumption of Expansion (2015–Present)

Beginning in 2015, Bank of America pursued organic growth by entering metropolitan areas where it previously lacked retail banking operations. The initial expansions included cities like Denver, followed by Minneapolis–Saint Paul and Indianapolis. These markets featured competition from major banks including Chase and Wells Fargo. Notably, the Twin Cities area also hosts U.S. Bancorp, a significant competitor outside the Big Four.

In January 2018, Bank of America extended its retail footprint into Pittsburgh to complement its existing commercial lending and investment activities. Pittsburgh had been one of the largest U.S. cities without a Big Four retail bank presence, primarily served by local institution PNC Financial Services. This move coincided with Chase entering Pittsburgh as well. By the end of fiscal year 2020, Bank of America ranked as Pittsburgh’s 16th largest bank by deposit volume, improving to 12th place in 2021.

February 2018 saw Bank of America announce its entry into Ohio’s three largest cities—Cleveland, Columbus, and Cincinnati—markets traditionally dominated by Chase. Columbus was a strategic choice due to its size, rapid growth, and presence of a credit card call center in nearby Westerville. Within twelve months, Bank of America became the fifth-largest bank by deposits in Columbus, trailing Ohio-based banks (Fifth Third Bank, Huntington Bancshares) and major national institutions (Chase, PNC), but ranking ahead of US Bancorp and KeyBank. As of 2021, it holds the ninth position statewide based on deposits.

In January 2020, Bank of America recruited advisors specializing in ultra-high-net-worth client services.

Operations

Bank of America derives 90% of its revenue from within the United States, concentrating on maintaining its status as the foremost bank domestically, a leadership position reinforced through targeted acquisitions.

Consumer Banking

The largest segment, Consumer Banking, caters to individual customers and small enterprises by providing a range of banking, lending, investment, and merchant services. Its lending portfolio includes business loans, mortgages, and credit cards. Investment services are offered through Merrill Edge, a specialized unit delivering research and call center support following the integration of Merrill Lynch. In 2016, this division represented 38% of the bank’s total revenue. Income sources encompass interest earnings, fees, and service charges. As a mortgage servicer, it primarily competes with the retail banking divisions of Citigroup, JPMorgan Chase, and Wells Fargo. The network includes more than 4,600 financial centers and roughly 15,900 ATMs.

Bank of America is a member of the Global ATM Alliance, which allows debit cardholders to withdraw cash at partner banks abroad with reduced fees; nonetheless, foreign currency exchange fees still apply, and credit card cash advances incur both advance and conversion charges.

Global Banking

The Global Banking division provides corporate clients with investment banking and lending solutions via its Global Corporate Banking, Global Commercial Banking, Business Banking, and Global Investment Banking units. This segment accounted for 22% of total revenue in 2016.

Before acquiring Merrill Lynch, Bank of America conducted its investment banking operations under Banc of America Securities LLC. Following the acquisition, these services operate under Merrill Lynch’s brand, offering advisory for mergers and acquisitions, underwriting, capital markets access, as well as sales and trading in fixed income and equity securities. The division is particularly strong in Leveraged Finance, Syndicated Loans, and mortgage-backed securities. Bank of America Merrill Lynch is home to one of Wall Street’s largest research teams and is based in New York City.

Global Wealth and Investment Management

The Global Wealth and Investment Management (GWIM) division oversees investment portfolios for both institutional clients and individuals through entities such as Merrill Lynch Global Wealth Management and U.S. Trust. In 2016, it generated 21% of the company's overall revenue and ranks among the top ten wealth managers in the U.S., managing client assets exceeding $2.5 trillion. GWIM consists of five core business lines: Premier Banking & Investments (which includes Bank of America Investment Services, Inc.), The Private Bank, Family Wealth Advisors, and Bank of America Specialist.

Global Markets

Serving institutional investors, the Global Markets division engages in securities trading, research provision, securities services, market making activities, and derivative-based risk management. This division contributed 19% to the company’s total revenue in 2016.

Labor

On April 9, 2019, Bank of America declared that it would raise its minimum hourly wage to $17.00 starting May 1, 2019, with a goal to increase it further to $20.00 by 2021.

Corporate Headquarters

The main executive offices of Bank of America are situated within the Bank of America Corporate Center in Charlotte, North Carolina. This skyscraper, completed in 1992, rises to a height of 871 feet (265 meters).

In 2012, the company discontinued its association with the American Legislative Exchange Council (ALEC).

Global Offices

The Global Corporate and Investment Banking segment of Bank of America operates its U.S. headquarters in Charlotte, while its European base is located in Dublin. Its Asian regional headquarters are established in both Hong Kong and Singapore.

Corporate Governance

Board of Directors
Name Role
Brian Moynihan Chairman of the Board and Chief Executive Officer, Bank of America Corporation
Susan S. Bies
Frank P. Bramble Sr.
Arnold W. Donald
Monica C. Lozano
Lionel L. Nowell, III
Clayton S. Rose
Thomas D. Woods
Maria T. Zuber
Sharon L. Allen
Jack O. Bovender Jr. Lead Independent Director, Bank of America Corporation
Pierre J. P. de Weck
Linda P. Hudson
Thomas J. May
Denise L. Ramos
Michael D. White
R. David Yost

Historical List of CEOs

  1. Hugh McColl (1998–2001)
  2. Ken Lewis (2001–2009)
  3. Brian Moynihan (2010–present)

Philanthropic Initiatives

Beginning in 1998, Bank of America pledged $350 billion over a decade toward affordable housing, small business development, job creation, and mortgage assistance in underserved communities. By 2004, the bank committed $750 million to support community development lending and affordable housing programs.

In 2007, the institution encouraged employees to purchase hybrid vehicles by offering $3,000 rebates and provided customers with incentives such as rebates or reduced interest rates for energy-efficient homes. Additionally, it collaborated with Brighter Planet to introduce environmentally friendly credit and debit cards that finance renewable energy initiatives.

Bank of America has also supported health care centers in Massachusetts and contributed $1 million to homeless shelters in Miami during 2007.

Under the leadership of Kaku Nakhate since 2010, the bank’s operations in India have promoted arts and cultural projects, including sponsorship of the Children’s Museum at CSMVS (Chhatrapati Shivaji Maharaj Vastu Sangrahalaya).

Parmalat Case

Following Parmalat SpA’s 2003 bankruptcy, the Italian multinational dairy and food company filed a $10 billion lawsuit against Bank of America, accusing it of profiting from inside knowledge of Parmalat's financial troubles. The dispute was resolved in July 2009 through a settlement under which Bank of America paid Parmalat $98.5 million by October that year. In April 2011, an Italian court cleared Bank of America and other banks of charges tied to facilitating Parmalat’s fraud and inadequate internal controls; however, banks faced allegations in Parma related to concealing fraudulent activities.

Mortgage-Related Disputes

In August 2011, Bank of America was sued by American International Group for $10 billion over alleged mortgage debt fraud. Another lawsuit involved $57.5 billion worth of mortgage-backed securities sold to Fannie Mae and Freddie Mac. That December, Bank of America agreed to a $335 million settlement addressing claims that Countrywide Financial discriminated against Hispanic and African-American homebuyers prior to its acquisition by BofA. In September 2012, the bank settled a shareholder class action lawsuit for $2.4 billion over misleading disclosures concerning the Merrill Lynch acquisition.

On February 9, 2012, Bank of America joined the four other largest mortgage servicers in consenting to the National Mortgage Settlement (NMS), which provided approximately $26 billion in aid to struggling homeowners and payments to governmental bodies—constituting the second-largest civil settlement in U.S. history. The agreement also required implementation of 305 new mortgage servicing standards.

In October 2012, federal prosecutors initiated a $1 billion civil lawsuit against Bank of America under the False Claims Act for mortgage fraud related to Countrywide’s approval of high-risk loans that imposed costs on taxpayers via Fannie Mae and Freddie Mac. By March 2014, Bank of America resolved this matter by paying $6.3 billion to Fannie Mae and Freddie Mac and repurchasing roughly $3.2 billion in mortgage bonds.

In April 2014, former Chief Financial Officer Joe L. Price settled allegations for $7.5 million concerning management’s failure to disclose material information about the Merrill Lynch merger. Subsequently, in August 2014, Bank of America agreed to a record-setting $16.65 billion settlement with the U.S. Department of Justice addressing risky mortgage-backed securities sold before the financial crisis—these loans originated from acquisitions including Merrill Lynch and Countrywide Financial. The settlement comprised $7 billion allocated for consumer relief along with $9.65 billion paid as penalties to federal and state authorities; California alone received $300 million designated for public pension funds—representing the largest government settlement ever reached with a single corporation in the United States.

Settlement with homeowners

On March 14, 2011, the hacker collective Anonymous began publishing emails claimed to be from Brian Penny, a former Bank of America staff member and LPI Specialist at Balboa Insurance, a previous subsidiary later acquired by Australian reinsurer QBE. These communications alleged instances of "fraud and corruption." Subsequently, on April 7, 2014, Bank of America and QBE resolved a class-action lawsuit connected to the email disclosures by agreeing to a $228 million settlement.

Unfair billing practices

In April 2014, the Consumer Financial Protection Bureau (CFPB) mandated Bank of America to deliver around $727 million in restitution to approximately 1.4 million customers impacted by deceptive marketing tactics and unfair billing related to credit card add-on products. The violations included misleading telemarketing scripts and unauthorized charges for undelivered credit monitoring services, affecting nearly 1.9 million accounts. This led to improper interest and fee assessments without providing the promised services. Later, in May 2022, the CFPB imposed a $10 million penalty on Bank of America for unlawful wage garnishments.

Discrimination

In 2018, former senior executive Omeed Malik initiated a $100 million arbitration claim through FINRA against Bank of America following an investigation into alleged sexual misconduct. His defamation suit alleged retaliation, contract breaches, and discrimination rooted in his Muslim identity. Malik secured an eight-figure settlement by July of that year.

South African currency manipulation

In April 2015, South Africa’s Competition Commission began probing cartel behavior involving major banks such as Bank of America, Barclays, Citigroup, JPMorgan Chase, and Standard New York Securities. The investigation targeted alleged collusion to fix prices in the foreign exchange market concerning the South African rand, covering spot transactions as well as futures and forwards trading. This conduct was reported to have distorted exchange rates and artificially inflated transaction costs associated with the rand.

Fake accounts, junk fees and withheld rewards

In 2023, the Consumer Financial Protection Bureau levied $250 million in fines and consumer compensation against Bank of America for deceptive practices that adversely affected hundreds of thousands of clients. These included charging insufficient funds fees multiple times on single transactions, withholding credit card rewards improperly, and opening accounts without customer authorization.

Consumer credit controversies

In January 2008, Bank of America informed certain customers—who had no payment delinquencies—that their interest rates would more than double, reaching as high as 28%. The bank faced backlash for increasing rates on customers with good credit histories without adequate explanation. In September 2009, Ann Minch released a widely viewed YouTube video criticizing the rate hikes; following media scrutiny, Bank of America reduced her interest rate. In 2010, further criticism arose when the bank was accused of foreclosing on three properties due to errors involving incorrect addresses on legal paperwork.

Investigation by the State of Arizona

In 2010, the State of Arizona launched an inquiry into Bank of America over allegations that it misled homeowners pursuing mortgage modifications. The attorney general of Arizona accused the bank of "repeatedly deceiving" borrowers. Following this, Bank of America provided certain loan modification options, but only if homeowners agreed to remove critical comments about the bank from online platforms.

Coal mining investment policy

On May 6, 2015, Bank of America revealed its intention to lower its financial involvement with coal companies. This decision came after sustained pressure from environmental organizations and academic institutions. The new approach was designed to progressively reduce the bank’s credit exposure within the coal mining industry.

WikiLeaks episode

In October 2009, WikiLeaks asserted possession of a 5 GB hard drive previously used by a Bank of America executive, with plans to disclose its contents. By November 2010, Julian Assange of WikiLeaks announced forthcoming revelations about a major U.S. bank, which led to a 3.2% decline in Bank of America’s stock price.

In December 2010, Bank of America stopped processing transactions linked to WikiLeaks, joining other companies such as MasterCard, PayPal, and Visa Europe in citing violations of internal policies. Later that month, the bank acquired more than 300 internet domains—including those bearing names of top executives—to mitigate potential negative fallout from anticipated WikiLeaks disclosures.

Prior to August 2011, WikiLeaks confirmed that the 5 GB data originated from deleted communications by former volunteer Daniel Domscheit-Berg.

Incident involving Ryan Coogler

In March 2022, filmmaker Ryan Coogler was mistakenly detained at a Bank of America branch in Atlanta after attempting to withdraw cash. Despite presenting valid identification—a California state ID and his Bank of America card—law enforcement was summoned before his identity was verified. The bank subsequently issued an apology, acknowledging that the teller had failed to properly confirm Coogler’s credentials before involving authorities.

Employee deaths

A tragic event occurred in 2013 when a Bank of America intern in London died after reportedly working until 6 a.m. for three consecutive days, raising concerns about excessive work hours in the industry. This incident sparked widespread debate and led Goldman Sachs to impose a daily cap of 17 working hours for interns.

In 2024, Leo Lukensas III, a former US Army Special Forces member employed within Bank of America’s investment banking division, passed away due to heart complications amid reports of an intense work culture demanding over 100-hour weeks. Employees were reportedly encouraged to underreport their hours to human resources. Lukensas had expressed plans to leave the company because of workload stress. His supervisor, Gary Howe, was removed from leadership responsibilities but remained employed following the incident.

Account closures (Debanking)

Bank of America has been criticized for closing accounts based on customers’ religious or political affiliations, frequently impacting individuals associated with conservative causes. In 2023, an African aid-focused Christian charity experienced an abrupt account termination without explanation. Initially refusing comment, the bank later made statements about the customer that were reportedly inaccurate in media reports. This controversy led to a shareholder proposal during a Bank of America annual meeting. In 2025, former US President Donald Trump accused CEO Brian Moynihan of engaging in politically motivated debanking and urged the institution to accommodate conservative clients.

Customer confidentiality

In the aftermath of the January 6, 2021 Capitol incident, Bank of America was scrutinized and investigated by Congress for reportedly disclosing extensive private information about customers who made purchases at Cabela's, lodged in Virginia hotels, or utilized ATMs in Washington, DC between January 5 and 7, despite lacking a legal mandate to do so. The bank justified its conduct by asserting that sharing such data was authorized.

Competition

Bank of America's main rivals encompass Wells Fargo, Santander, PNC Financial Services, Ally Financial, Capital One, JPMorgan Chase Bank, US Bank, Citizens Financial Group, Citigroup, M&T Bank, and Truist.

Prominent properties

Significant real estate holdings associated with Bank of America include:

In 2010, Bank of America finalized construction on 1 Bank of America Center in downtown Charlotte—a LEED-certified skyscraper accompanied by an adjacent hotel.

Previous properties

The Robert B. Atwood Building in Anchorage, Alaska, formerly known as the Bank of America Center after Security Pacific Bank became a tenant through acquisition, was later purchased by Alaska-based Northrim Bank and subsequently moved across the street to the Linny Pacillo Parking Garage.

The Bank of America Building (Providence), originally opened as the Industrial Trust Building in 1928 and still Rhode Island’s tallest edifice, underwent several name changes due to mergers including Industrial National Bank and Fleet Bank. Bank of America leased this building from 2004 until 2012; it has remained unoccupied since March 2013. The structure is colloquially referred to as the Superman Building because it is believed to have inspired the design for the Daily Planet headquarters featured in the Superman comic series.

Miami Tower in Downtown Miami—long identified as the Bank of America Tower—was prominently displayed in Miami Vice. In 2012, it earned recognition from the AIA Florida Chapter on its Florida Architecture: 100 Years. 100 Places list under this name.

The TC Energy Center in Houston, Texas—previously called the Bank of America Center until the bank vacated the premises in June 2019—is a distinguished postmodern skyscraper designed by architect Philip Johnson. Since its completion in 1983, it has stood as a significant feature of Houston’s downtown skyline.

See also

Further reading

External links

  1. ↑ Federal Reserve

Related profiles

WWells FargoFFifth Third BankSStandard CharteredMMerrill Edge
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