Bank of America
| File:Bank of America logo.svg Logo used since 2018 | |
| Company type | Public |
|---|---|
| Industry | Financial services, Investment banking |
| Founded | 1998 (merger of NationsBank and original Bank of America) |
| Headquarters | Charlotte, North Carolina , United States |
Area served | Worldwide (over 40 countries) |
| Products | Commercial banking, Wealth management, Investment banking |
| Owner | Berkshire Hathaway (9% ownership stake) |
Number of employees | 213,000 (2024) |
| Website | www |
Bank of America Corporation (commonly known as Bank of America or abbreviated as BofA or BoA) is a leading American 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 operations based in Manhattan. Established in 1998 through the merger of NationsBank and the original Bank of America, it ranks as the second-largest banking institution both in the United States and worldwide by market capitalization, surpassed only by JPMorgan Chase. As one of the United States' prominent Big Four banks, BofA manages approximately 10% of all U.S. bank deposits and competes closely with JPMorgan Chase, Citigroup, and Wells Fargo. Its principal business focuses include commercial banking, wealth management, and investment banking services.
The bank's origins trace back to the 1784 establishment of Massachusetts Bank and to 1904 with the founding of the Bank of Italy by entrepreneur Amadeo Pietro Giannini. Initially created to serve Italian immigrants facing discrimination, Giannini’s Bank of Italy transformed into Bank of America after acquiring Banca d'America e d'Italia in 1922. Significant expansion occurred following federal banking legislation changes after the 1950s. After suffering substantial losses during the 1998 Russian financial crisis, Charlotte-based NationsBank acquired BankAmerica for $62 billion in what was then the largest bank acquisition in history, resulting in today’s Bank of America Corporation.
The company further diversified its operations through acquisitions such as Merrill Lynch, enhancing its wealth management and investment banking capabilities under the brand Bank of America Merrill Lynch (currently BofA Securities). Both divisions hold considerable market positions: its investment banking unit ranks as the world’s third-largest among "Bulge Bracket" firms, while its wealth management arm oversees $1.08 trillion in assets under management (AUM), second only to UBS globally. The commercial banking segment serves around 46 million consumer and small business clients through roughly 4,600 branches and 16,000 ATMs across the U.S. and more than 40 countries.
Following the 2008 financial crisis, Bank of America’s extensive market presence has drawn regulatory attention regarding mortgage lending practices and financial reporting. As of 2024, the corporation reported revenues totaling $102 billion, net income of $27.1 billion, assets amounting to $3.26 trillion, and equity valued at $296 billion. Employing approximately 213,000 individuals worldwide and with Berkshire Hathaway holding a 9% ownership stake, BofA stands among the top financial institutions globally by revenue and market value. The bank earned recognition as "World's Best Bank" by Euromoney in 2018 and frequently ranks highly on lists such as Forbes Global 2000 and Fortune 500 for its financial performance and business growth.
History
Bank of America, Los Angeles was established in California in 1923. In 1928, it was acquired by San Francisco-based Bank of Italy, which rebranded itself as Bank of America two years later.
The eastern branch’s history begins in 1784 with the chartering of Massachusetts Bank, recognized as the first federally chartered joint-stock bank in the United States. This institution eventually evolved into FleetBoston Financial, which merged with Bank of America in 2004. In Charlotte, North Carolina, Commercial National Bank was founded in 1874; it merged with American Trust Company in 1958 to become American Commercial Bank. A subsequent merger in 1960 formed North Carolina National Bank, which later combined with C&S/Sovran Corporation in 1991 to create NationsBank.
The central franchise’s lineage dates back to 1910 when Commercial National Bank merged with Continental National Bank of Chicago; this entity ultimately became Continental Illinois National Bank & Trust.
Bank of America
The foundation of Bank of America traces back to October 17, 1904, when businessman Amadeo Giannini established the Bank of Italy in San Francisco. Bank of America, Los Angeles was created in 1922, with Giannini holding a minority stake. These two institutions merged in 1928, combining their assets to form what would become the largest banking entity in the United States.
In 1918, Giannini founded Bancitaly Corporation with the purpose of acquiring shares in banks located in New York City and overseas.
By 1928, Giannini united his bank with Bank of America, Los Angeles, which was under the leadership of Orra E. Monnette. On November 3, 1930, the Bank of Italy was renamed Bank of America National Trust and Savings Association, becoming the sole bank in the nation to carry this title at that time. Both Giannini and Monnette acted as co-chairs, steering the company’s strategic direction and expansion efforts.
Expansion in California
Following California’s 1909 legislation permitting branch banking, Giannini was among the first to implement this model, launching the bank’s inaugural branch outside San Francisco in San Jose. By 1929, Bank of America operated 453 branches across California, managing assets exceeding US$1.4 billion. Giannini envisioned creating a nationwide bank, extending operations throughout western states and venturing into insurance through his holding company, Transamerica Corporation.
In 1953, regulatory authorities mandated the separation of Transamerica and Bank of America under provisions of the Clayton Antitrust Act. Subsequently, the Bank Holding Company Act of 1956 prohibited banks from owning non-banking subsidiaries such as insurance firms. This led to Bank of America’s divestiture from Transamerica, which continued its insurance business independently. Additionally, federal regulations restricted Bank of America from interstate banking; consequently, its out-of-state banks were spun off into a separate organization that eventually became First Interstate Bancorp, later acquired by Wells Fargo and Company in 1996. It was not until regulatory reforms in the 1980s that Bank of America resumed expansion beyond California’s borders.
Technological advancements enabled linking credit cards directly to customers’ bank accounts. In 1958, Bank of America introduced the BankAmericard, which was rebranded as Visa in 1977, establishing a significant presence in payment processing services. Competitors such as Interbank (which evolved into Mastercard) emerged during the 1960s.
Between 1970 and 1971, amid periods of social unrest, Bank of America branches in California experienced 66 attacks including bombings and arson incidents. These events caused approximately $500,000 in property damage but resulted in few injuries.
Expansion outside California
Following enactment of the Bank Holding Company Act of 1956, BankAmerica Corporation was formed to oversee ownership and management of Bank of America and its subsidiaries.
In 1983, Bank of America extended its reach beyond California through acquisitions, partially driven by Stephen McLin from Seattle-First National Bank, a unit of Seafirst Corporation. Seafirst faced insolvency due to poor loans related to the oil sector but retained its brand until merging with NationsBank in 1998.
During 1986–87, BankAmerica incurred substantial losses from bad loans in emerging markets. This financial downturn led to CEO Sam Armacost being replaced by his predecessor A. W. (Tom) Clausen. The decline in stock value exposed the company to a hostile takeover attempt by First Interstate Bancorp. To counter this threat, BankAmerica divested several assets including FinanceAmerica, brokerage firm Charles Schwab & Co., and its operations in Italy.
In 1992, BankAmerica completed a landmark acquisition by purchasing Security Pacific Corporation along with its subsidiaries spanning multiple western states—then the largest bank acquisition ever recorded. Regulators required divestment of certain Washington state branches to avoid excessive market concentration. Later that year, expansion continued into Nevada through acquisition of Valley Bank of Nevada.
The company furthered its growth in 1994 by acquiring Continental Illinois National Bank and Trust Co., a government-controlled institution due to previous insolvency issues. Illinois’ restrictive branch banking laws initially limited expansion opportunities; however, BankAmerica established a national lending division based in Chicago to enhance its regional footprint.
These strategic mergers reinstated BankAmerica as the leading U.S. bank holding company by deposits until it was surpassed by NationsBank in 1997 and First Union Corp. in 1998.
Regarding capital markets activities, acquiring Continental Illinois bolstered BankAmerica’s leveraged finance operations and expanded its broker-dealer arm BancAmerica Securities into a comprehensive investment services firm. In 1997, BankAmerica purchased San Francisco-based Robertson Stephens for $540 million; this firm specialized in technology-focused investment banking and was integrated into BancAmerica Securities under the new name "BancAmerica Robertson Stephens."
Consolidation of NationsBank and BankAmerica
In 1997, BankAmerica extended a $1.4 billion loan to the investment firm D. E. Shaw & Co. to oversee several banking operations; however, D.E. Shaw suffered considerable losses amid the 1998 Russian financial crisis. The following year, NationsBank, based in Charlotte, completed the acquisition of BankAmerica in what was then the largest bank merger in history.
Although NationsBank was technically the surviving institution, the unified organization adopted the Bank of America brand. 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. This combined entity retained Federal Charter 13044, originally issued to Giannini's Bank of Italy in 1927. The headquarters remained in Charlotte, preserving NationsBank’s stock price history and SEC filings prior to 1998. Hugh McColl, formerly NationsBank’s president, chairman, and CEO, assumed these leadership roles for the merged company.
By 1998, the newly formed Bank of America held assets totaling $570 billion and operated 4,800 branches across 22 states. Federal regulators mandated the divestiture of only 13 branches in New Mexico to avoid monopolistic dominance; these were sold to BOK Financial Corporation 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) functioned as Bank of America's investment banking division from 1998 until its merger with Merrill Lynch in 2008. Headquartered in New York City, BAS competed across domestic and international equity and investment banking sectors. It held registration as a broker-dealer with the SEC and was a member of both the NYSE and NASD. The term "Banc" highlighted that it was not a bank and that its assets were not insured by the FDIC.
Established in 1998, BAS operated under a business strategy combining corporate lending with investment banking services, akin to Citigroup’s approach. Its most prominent units included high-yield debt underwriting, Leveraged Finance, and industry coverage groups such as Healthcare, Consumer & Retail, Media & Telecom, Financial Institutions, Real Estate, and Gaming. The equities and derivatives division significantly contributed to revenue generation and was led by executives like John Sandleman and Chris Innes—who became one of the youngest Managing Directors before launching his own hedge fund. BAS also provided leveraged financing solutions for private equity firms and maintained both a Mergers & Acquisitions Group and a Transaction Development Group focused on deal origination. Its product offerings encompassed fixed income, currency trading, and commodities.
From 2007 through 2008, BAS reduced its international footprint by eliminating certain industry groups in Europe and scaling back banking and trading roles in North America and Asia ahead of its integration with Merrill Lynch. After the merger, John Thain initially headed the combined Global Corporate and Investment Banking division but was succeeded by Kenneth D. Lewis in early 2009 following substantial financial setbacks. Subsequently, Brian Moynihan took charge of Global Banking and Wealth Management. BAS’s SEC registration was formally terminated in January 2011 after complete assimilation.
Operating worldwide, BAS maintained key offices in New York, Charlotte, Chicago, San Francisco, Tokyo, Frankfurt, London, and Mumbai. Upon completion in 2009, its investment banking operations were centralized at the Bank of America Tower in New York City—a $1 billion skyscraper representing the firm’s market stature. Prior to this consolidation, BAS occupied multiple locations throughout New York resulting from earlier mergers.
2005 to 2007
Following CEO Hugh McColl's departure in 2001, Ken Lewis was appointed as his replacement. In 2004, Bank of America revealed plans to acquire Boston-based FleetBoston Financial for $47 billion. At the time, FleetBoston was the seventh-largest bank in the United States, boasting $197 billion in assets, serving over 20 million customers, and generating $12 billion in revenue. This acquisition broadened Bank of America's market presence and unified its branding across all former FleetBoston locations. The merger also resulted in notable reductions in the workforce.
On June 30, 2005, Bank of America agreed to purchase the credit card giant MBNA for $35 billion through a combination of cash and stock. The Federal Reserve granted approval in December 2005, with the transaction completing on January 1, 2006. This move elevated Bank of America to a leading position among domestic and international credit card issuers, managing more than 40 million U.S. accounts and $140 billion in outstanding balances under the newly named FIA Card Services.
Operating as BankBoston in Latin America, Bank of America struck a deal with Banco Itaú in May 2006 to divest its Brazilian operations and grant exclusive purchase rights for its Chilean and Uruguayan units to Itaú in exchange for shares. This arrangement increased Bank of America's ownership stake in Itaú to 11.51%, representing a strategic withdrawal from certain Latin American markets while maintaining investment interests.
On November 20, 2006, Bank of America announced its intention to acquire The United States Trust Company from Charles Schwab Corporation for $3.3 billion. This acquisition added roughly $100 billion in assets under management and strengthened the bank’s wealth management capabilities. The deal was finalized on July 1, 2007.
Bank of America obtained Federal Reserve approval on September 14, 2007, to acquire LaSalle Bank Corporation from ABN AMRO for $21 billion, raising its total assets to $1.7 trillion. Despite initial legal challenges in the Netherlands, the acquisition was completed by October 1, 2007. LaSalle’s extensive network bolstered Bank of America's footprint across Illinois, Michigan, and Indiana by adding 411 branches, serving 17,000 commercial clients and 1.4 million retail customers, alongside 1,500 ATMs—establishing it as Chicago’s largest bank with a 14% share of deposits. The transaction also included ownership rights to the Chicago Marathon event.
On May 5, 2008, LaSalle branches were rebranded as Bank of America locations, further solidifying the company’s influence within the Midwest market.
2007–2010 (Subprime mortgage crisis)
During the subprime mortgage crisis, under CEO Ken Lewis, Bank of America completed two critical acquisitions that significantly influenced its recovery path despite facing numerous lawsuits resulting in multi-billion-dollar settlements.
Acquisition of Countrywide Financial
On August 23, 2007, Bank of America entered into a $2 billion repurchase agreement involving preferred stock from Countrywide Financial, offering a fixed annual return of 7.25% and an option to purchase common stock at $18 per share.
Subsequently, on January 11, 2008, Bank of America declared a $4.1 billion acquisition of Countrywide Financial. Although Countrywide was under FBI investigation concerning its mortgage lending practices at that time, the acquisition was completed in July 2008. This transaction substantially expanded Bank of America's mortgage servicing operations and positioned it as the foremost U.S. mortgage originator and servicer with control over approximately one-fifth to one-quarter of the home loan market. The acquisition was executed through Red Oak Merger Corporation, a subsidiary formed to isolate Countrywide's financial risks.
By late 2007, Countrywide managed nine million mortgages totaling $1.4 trillion and was subsequently rebranded as Bank of America Home Loans.
In December 2011, Bank of America reached a $335 million settlement with the Justice Department related to discriminatory lending practices at Countrywide where minority borrowers were disproportionately directed toward higher-cost subprime loans despite qualifying for prime rates.
Merrill Lynch Acquisition
On September 14, 2008, Bank of America declared its intention to acquire Merrill Lynch & Co., Inc. through a $50 billion all-stock transaction, effectively preventing Merrill’s imminent collapse. At the same time, Bank of America explored acquiring Lehman Brothers but discontinued negotiations due to the absence of government guarantees; Lehman subsequently filed for bankruptcy that same day. This acquisition elevated Bank of America to the status of the largest financial services firm worldwide. Temasek Holdings, Merrill's principal shareholder, briefly held a 3% ownership in Bank of America but divested this stake in early 2009, incurring a $3 billion loss.
The merger received shareholder approval on December 5, 2008, and finalized on January 1, 2009. Initially, Bank of America intended to keep Merrill’s CEO John Thain’s leadership team; however, following Thain’s exit, most of his associates departed as well, leaving only Tom Montag remaining.
In the earnings report issued January 16, 2009, Bank of America disclosed that Merrill Lynch had suffered a $21.5 billion operating loss in the fourth quarter, primarily due to sales and trading activities overseen by Montag. The bank also revealed it had attempted to withdraw from the acquisition after these losses were uncovered but was compelled by federal authorities to proceed. After this disclosure, Bank of America’s share price plummeted to its lowest point in 17 years, with market capitalization falling beneath the amount paid for Merrill.
CEO Kenneth Lewis testified that government officials exerted pressure on him to complete the acquisition under threat to his position and regulatory standing. Internal communications confirmed this pressure; Richmond Federal Reserve President Jeffrey Lacker cautioned that failure to acquire Merrill could result in management being "gone." Lewis reportedly sought formal confirmation from regulators regarding the government mandate for the deal to reassure shareholders.
Through this acquisition, Bank of America became the world’s top underwriter of high-yield debt, ranked third in global equity underwriting, and ninth among M&A advisors. As credit market conditions stabilized, Merrill Lynch contributed $3.7 billion to Bank of America’s $4.2 billion profit by Q1 2009 and accounted for over a quarter of profits in Q3.
On September 28, 2012, Bank of America resolved a class-action lawsuit tied to the Merrill acquisition with a $2.43 billion settlement—one of the earliest significant securities class action resolutions stemming from the 2008 financial crisis. Numerous major financial institutions and hedge funds were involved due to their investments in Bank of America shares post-merger.
Federal Troubled Asset Relief Program
On January 16, 2009, Bank of America secured $20 billion in capital infusion along with a guarantee covering up to $118 billion in potential losses from the U.S. government under the Troubled Asset Relief Program (TARP), supplementing an earlier $25 billion received in late 2008. This additional support facilitated the bank’s integration with Merrill Lynch. Subsequently, members of Congress raised concerns regarding the allocation of bailout funds amid reports indicating tighter credit standards and loan denials impacting small businesses and consumers. Then-CEO Ken Lewis asserted, "We are still lending, and we are lending far more because of the TARP program," although skepticism remained prevalent.
In March 2009, Bank of America obtained an extra $5.2 billion through the bailout associated with American International Group, part of broader governmental assistance measures.
Amid leadership challenges and federal aid acceptance, The Wall Street Journal reported that Bank of America operated under a confidential "memorandum of understanding" with U.S. regulators mandating board restructuring along with enhancements in risk management and liquidity controls. The bank arranged for six directors’ resignations and created a Regulatory Impact Office tasked with meeting regulatory requirements or facing penalties.
On December 2, 2009, Bank of America announced its plan to repay the full $45 billion received via TARP by utilizing $26.2 billion from surplus liquidity and $18.6 billion from "common equivalent securities" (Tier 1 capital). The repayment was completed on December 9. CEO Ken Lewis highlighted the institution’s accountability to taxpayers and reaffirmed its dedication to maintaining lending as the nation’s largest bank.
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) for failing to disclose up to $5.8 billion in bonuses at Merrill Lynch. These bonuses had been authorized prior to the merger but were not revealed to shareholders during the December 2008 vote on Merrill's acquisition. New York Attorney General Andrew Cuomo condemned the timing and lack of transparency as "corporate irresponsibility," indicating that investigations were ongoing. Notably, on August 5, federal judge Jed Rakoff declined to approve the proposed settlement, an uncommon judicial move.
During an August 10 hearing, Judge Rakoff expressed strong disapproval of the bonuses. Although $3.6 billion was ultimately paid out, $850 million of this was guaranteed; approximately 39,000 employees received average bonuses around $91,000, with 696 individuals awarded sums exceeding $1 million and one recipient receiving over $33 million.
On September 14, the judge rejected the settlement once again and directed that preparations be made for a trial scheduled by February 2010. He emphasized that shareholders—the party harmed by nondisclosure—would bear the cost of the fine while management retained control over settlement decisions, describing this as a "cynical relationship" between Bank of America and the SEC.
By February 2010, Judge Rakoff reluctantly approved a revised fine of $150 million, labeling it "half-baked justice" and insufficient. Unlike the prior $33 million penalty, this amount was earmarked exclusively for distribution to shareholders affected by the nondisclosures. The litigation was filed as SEC v. Bank of America Corp., 09-cv-06829 (S.D.N.Y.).
This matter also drew scrutiny from Congress through investigations conducted by the House Committee on Oversight and Government Reform chaired by Edolphus Towns and its Domestic Policy Subcommittee under Dennis Kucinich.
Fraud
In 2010, the U.S. government charged Bank of America with defrauding public institutions such as schools, hospitals, and various state and local governments through misconduct related to municipal bond investment proceeds. To resolve these allegations, the bank agreed to pay a total of $137.7 million—comprising $25 million to the IRS and $4.5 million to the state attorney general. Former executive Douglas Campbell pled guilty to charges including antitrust violations, conspiracy, and wire fraud, while additional bankers and brokers remained subjects of ongoing probes.
On October 24, 2012, Manhattan’s chief federal prosecutor initiated a lawsuit accusing Bank of America of defrauding U.S. taxpayers by more than $1 billion via Countrywide Financial’s sale of toxic mortgage assets to Fannie Mae and Freddie Mac in what was called the "Hustle" scheme. Nonetheless, on May 23, 2016, the Second U.S. Circuit Court of Appeals determined that evidence supported only an "intentional breach of contract" rather than fraud, citing absence of fraudulent intent under provisions of 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 surrounding Merrill Lynch’s acquisition. He was succeeded by Brian Moynihan as president and CEO beginning January 1, 2010. Subsequent to this leadership transition, credit card charge-offs and delinquency rates decreased significantly, and Bank of America repaid the $45 billion it had received from the Troubled Assets Relief Program.
Workforce Reductions (2011 to 2014)
Beginning in 2011, Bank of America embarked on a series of staff cutbacks aimed at reducing its workforce by around 36,000 employees to realize $5 billion in annual cost savings by 2014. By the close of 2012, the bank accelerated this downsizing effort, cutting 16,000 positions ahead of schedule as part of its Project New BAC initiative. These measures responded to regulatory demands and a period of sluggish revenue growth.
In early 2014, Berkshire Bank purchased 20 Bank of America branches located in New York for $14.4 million. Concurrently, Bank of America divested approximately twenty branches in Michigan to Huntington Bancshares, which rebranded these locations as Huntington National Bank branches by September 2014.
As part of its strategic pivot toward digital banking, Bank of America significantly enhanced its mobile banking services. By 2014, the bank reported 31 million active online users and 16 million mobile app users; meanwhile, the number of physical branches decreased to 4,900 due to declining in-person visits. By mid-2018, mobile users had increased to 25.3 million while branch numbers further dropped to 4,411, reflecting the institution’s ongoing transition toward digital channels worldwide.
Divestment from China Construction Bank
In 2005, Bank of America took a 9% equity position in China Construction Bank, one of the Big Four Chinese banks, investing $3 billion as its largest foray into China’s financial market. With operational offices in Hong Kong, Shanghai, and Guangzhou, the bank sought to grow its presence within China through this stake. In 2008, it earned the Project Finance Deal of the Year award at the ALB Hong Kong Law Awards. By November 2011, Bank of America announced intentions to sell most of its holdings and completed the sale of its remaining shares by September 2013 for up to $1.5 billion, marking its exit from the Chinese banking sector.
$17 Billion Settlement with U.S. Justice Department
In August 2014, Bank of America reached an agreement on a nearly $17 billion settlement addressing allegations related to toxic mortgage-backed securities tied to subprime lending practices. This settlement—one of the largest corporate resolutions in U.S. history—included $9.65 billion in penalties and $7 billion allocated for relief efforts benefiting homeowners, pension funds, and municipal entities affected by these securities. While significant, this settlement accounted for only a portion of the estimated $700 billion total damages linked to these mortgage issues.
The case heavily relied on whistleblower testimony from three insiders: Shareef Abdou (senior vice president), Robert Madsen (appraiser), and Edward O'Donnell (Fannie Mae official). Collectively, these individuals were awarded $170 million for their crucial role in uncovering the misconduct.
DOD Community Bank
Bank of America collaborated with the United States Department of Defense to establish DOD Community Bank, which provides comprehensive banking services at 68 branches and ATMs situated on U.S. military bases globally—including locations such as Guantanamo Bay Naval Base, Germany, Japan, Italy, South Korea, and the United Kingdom. Although operated by Bank of America, DOD Community Bank functions independently with no account interchangeability between the two institutions. Deposits held in checking and savings accounts are insured by the Federal Deposit Insurance Corporation up to $250,000 despite all branches operating outside U.S. territorial jurisdiction.
Refusal to fund manufacturers of military-style firearms
In April 2018, Bank of America declared it would halt financing for producers of military-style firearms, including the AR-15 rifle. This decision was influenced by recent mass shooting incidents and the bank’s dedication to combating gun violence.
Renewed growth phase (2015–present)
Beginning in 2015, Bank of America recommenced its organic growth by entering new retail markets such as Denver, Minneapolis–Saint Paul, and Indianapolis, positioning itself against major competitors like Chase and Wells Fargo. The Twin Cities area also presents significant rivalry from the local institution U.S. Bancorp.
In January 2018, the bank extended its footprint into the Pittsburgh region to supplement its existing commercial lending and investment services. Pittsburgh had previously lacked a Big Four retail banking presence, with local powerhouse PNC Financial Services dominating the market. By the close of fiscal year 2020, Bank of America was ranked as Pittsburgh’s 16th largest bank by deposit volume, advancing to 12th place by 2021 despite competition from established players such as PNC and BNY Mellon.
February 2018 marked Bank of America’s entry into Ohio’s three largest metropolitan areas—Cleveland, Columbus, and Cincinnati—markets predominantly led by Chase. Columbus serves as a strategic center due to its size, expansion trajectory, and an existing credit card call center located nearby in Westerville. Within one year, Bank of America rose to become the fifth largest bank by deposits in Columbus, ranking behind regional and local banks but surpassing rivals like US Bancorp and KeyBank. As of 2021, it held the ninth position statewide based on deposits.
In January 2020, Bank of America enhanced its wealth management capabilities by recruiting advisors specializing in ultra-high-net-worth clientele, thereby broadening its service offerings for affluent individuals.
Operations
Bank of America derives approximately 90% of its income domestically, concentrating its corporate strategy on preserving its leadership status in the U.S. market through strategic acquisitions.
Consumer Banking
The Consumer Banking segment, representing the largest portion of Bank of America’s operations, delivers financial products and services to individuals and small enterprises. These include banking accounts, investment services, merchant solutions, and lending options such as mortgages, business loans, and credit cards. Investment services are provided through Merrill Edge, a unit established after acquiring Merrill Lynch. In 2016, this division contributed 38% of the bank’s total revenue. Income sources encompass interest earnings, service fees, and other charges. As a prominent mortgage servicer, Consumer Banking primarily competes with the retail divisions of Citigroup, JPMorgan Chase, and Wells Fargo. The network includes more than 4,600 retail branches and about 15,900 ATMs nationwide.
Bank of America is part of the Global ATM Alliance, offering reduced fees for debit cardholders traveling abroad within partner banks’ networks. Nonetheless, charges for foreign currency conversion and credit card cash advances remain applicable.
Global Banking
The Global Banking division provides corporate clients with investment banking and lending solutions via units such as Global Corporate Banking, Global Commercial Banking, Business Banking, and Global Investment Banking. This segment accounted for 22% of total revenue in 2016.
Before integrating Merrill Lynch, Bank of America operated its investment banking under Banc of America Securities LLC. Now incorporated into Merrill Lynch, this division delivers advisory services for mergers and acquisitions, underwriting support, capital markets access, along with fixed income and equity sales & trading. Its core competencies include Leveraged Finance, Syndicated Loans, and mortgage-backed securities expertise. Bank of America Merrill Lynch boasts one of Wall Street’s largest research teams and is headquartered in New York City.
Global Wealth and Investment Management
The Global Wealth and Investment Management (GWIM) segment oversees investment portfolios for both individual and institutional clients, incorporating Merrill Lynch Global Wealth Management and U.S. Trust. Representing 21% of the corporation's total revenue in 2016, GWIM ranks among the top ten wealth management firms in the United States, managing client assets exceeding $2.5 trillion. Its core business units consist of Premier Banking & Investments, The Private Bank, Family Wealth Advisors, and Bank of America Specialist.
Global Markets
The Global Markets division caters to institutional clientele by providing services such as securities trading, market research, securities processing, market making, and derivative-based risk management. In 2016, this division contributed 19% to the company’s overall revenue.
Labor
On April 9, 2019, Bank of America revealed plans to increase its minimum hourly wage to $17 starting May 1, 2019, with an objective to reach $20 per hour by 2021 as part of efforts to improve employee compensation levels.
Offices
The main executive headquarters of Bank of America are located in the Bank of America Corporate Center in Charlotte, North Carolina—a high-rise building completed in 1992 at 100 North Tryon Street.
In 2012, the company discontinued its involvement with the American Legislative Exchange Council (ALEC).
International offices
Bank of America's Global Corporate and Investment Banking maintains its U.S. headquarters in Charlotte, with European operations based in Dublin and Asian offices situated in Hong Kong and Singapore.
Corporate governance
| Name | Position |
|---|---|
| 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 |
List of CEOs
- Hugh McColl (1998–2001)
- Ken Lewis (2001–2009)
- Brian Moynihan (2010– )
Charitable efforts
Bank of America has dedicated substantial funding toward community development and sustainability programs. In 1998, it committed $350 billion over a decade to support affordable mortgage lending, housing initiatives, small business growth, and job creation within underserved communities. By 2004, this commitment expanded with an additional $750 million directed toward community lending and affordable housing projects.
In 2007, the company promoted environmentally responsible behavior by providing rebates to employees purchasing hybrid vehicles and offering customers incentives for energy-efficient home purchases. Additionally, it introduced green credit and debit cards in collaboration with Brighter Planet to finance renewable energy initiatives through card usage.
The bank also contributes to health centers in Massachusetts and donated $1 million to homeless shelters in Miami during 2007. Since 2010, under Kaku Nakhate's leadership in India, Bank of America has invested in arts and cultural programs—including sponsoring the Children’s Museum at CSMVS in Mumbai—strengthening both its local presence and corporate social responsibility efforts.
Parmalat litigation
After Parmalat declared bankruptcy in 2003, the Italian dairy giant initiated a $10 billion lawsuit against Bank of America, accusing the bank of benefiting from inside knowledge of Parmalat’s financial distress. The dispute concluded in 2009 with Bank of America agreeing to pay Parmalat $98.5 million. Subsequently, in 2011, an Italian court cleared Bank of America and others of allegations related to aiding Parmalat in concealing fraud; however, related legal proceedings continued in Parma.
In August 2011, American International Group filed a $10 billion lawsuit against Bank of America, citing fraudulent mortgage debt practices. Additional legal claims involved $57.5 billion worth of mortgage-backed securities sold to Fannie Mae and Freddie Mac. By December 2011, Bank of America settled a federal lawsuit for $335 million concerning discriminatory practices linked to Countrywide Financial, which it had acquired.
In September 2012, Bank of America resolved a shareholder class action with a $2.4 billion settlement connected to its acquisition of Merrill Lynch. Earlier that year, by February 2012, the bank joined four other leading servicers in the National Mortgage Settlement, pledging $26 billion in assistance to homeowners and government entities—the second-largest civil settlement in U.S. history.
In October 2012, U.S. prosecutors brought a $1 billion civil suit accusing Bank of America of mortgage fraud associated with Countrywide’s high-risk loans backed by taxpayer guarantees. The bank agreed to settle in March 2014 by paying $6.3 billion to Fannie Mae and Freddie Mac and repurchasing $3.2 billion worth of mortgage bonds.
In April 2014, former CFO Joe L. Price consented to a $7.5 million settlement over nondisclosure of merger details related to Merrill Lynch. Later that year, in August 2014, Bank of America finalized a record-breaking $16.65 billion settlement with the U.S. Department of Justice concerning the sale of risky mortgage-backed securities from its Merrill Lynch and Countrywide acquisitions during 2004–2008.
This historic agreement included $7 billion allocated for consumer relief and $9.65 billion paid as penalties to federal and state authorities, with California receiving $300 million designated for public pension funds. It remains the largest settlement ever reached between a single corporation and the federal government.
Homeowner settlement
On March 14, 2011, the hacker collective Anonymous published emails purportedly from Brian Penny, a former employee at Bank of America who worked as an LPI Specialist at Balboa Insurance—a former subsidiary later sold to Australian reinsurer QBE—allegedly exposing "corruption and fraud." On April 7, 2014, Bank of America and QBE agreed to a class-action settlement amounting to $228 million related to this data leak.
Unfair billing allegations
In April 2014, the Consumer Financial Protection Bureau (CFPB) mandated Bank of America to provide approximately $727 million in consumer relief due to deceptive marketing tactics and unlawful billing practices involving credit card add-on products. Approximately 1.4 million customers were subjected to misleading telemarketing scripts, while unauthorized charges for credit monitoring services affected around 1.9 million accounts. The bank imposed fees for services never rendered, resulting in improper charges. In May 2022, the CFPB imposed a $10 million fine on Bank of America for illegal wage garnishments.
Discrimination
In 2018, former top executive Omeed Malik initiated a $100 million arbitration claim via FINRA against Bank of America following an inquiry into alleged sexual misconduct. His lawsuit for defamation included accusations of retaliation, contract violations, and discrimination linked to his Muslim heritage. Malik secured a settlement valued in the eight-figure range by July 2018.
South African currency manipulation
The Competition Commission of South Africa began investigating cartel behavior in April 2015 involving several major banks such as Bank of America, Barclays, Citigroup, and JP Morgan Chase. The investigation targeted suspected collusion to fix prices within the foreign exchange market concerning the South African rand, encompassing spot trades as well as futures and forward contracts. This alleged misconduct reportedly distorted currency rates and increased transaction costs related to the rand.
Fake accounts, junk fees and withheld rewards
In 2023, the Consumer Financial Protection Bureau levied $250 million in penalties and restitution against Bank of America for misleading practices impacting hundreds of thousands of customers. These violations included charging insufficient funds fees twice, withholding credit card rewards, and opening accounts without customers’ authorization.
Consumer credit controversies
In January 2008, Bank of America faced backlash after raising interest rates up to 28% on certain customers who maintained good credit without providing justification. In September 2009, customer Ann Minch’s viral video drew widespread attention to these rate increases; subsequently, the bank reduced her interest rate. By 2010, the bank was accused of improperly foreclosing on three properties due to errors in legal paperwork.
State of Arizona investigation
Arizona authorities launched an inquiry in 2010 into Bank of America for allegedly deceiving homeowners applying for mortgage modifications. The state’s attorney general charged the bank with repeatedly misleading borrowers. In response, Bank of America offered some loan adjustments on the condition that homeowners remove critical posts about the bank from online platforms.
Investment in coal mining
On May 6, 2015, Bank of America declared a strategic initiative to scale back its financial exposure to coal industry companies. This decision came amid pressure from academic institutions and environmental advocates and aligned with the bank’s broader objective to reduce credit risk associated with coal mining.
WikiLeaks incident
In October 2009, WikiLeaks founder Julian Assange asserted possession of a 5 GB hard drive previously owned by a Bank of America executive and announced plans to publish its contents. In November 2010, Assange revealed intentions to disclose information capable of destabilizing a major U.S. bank, resulting in a 3.2% decline in Bank of America’s stock price.
By December 2010, Bank of America had halted processing transactions connected to WikiLeaks, joining other financial firms such as MasterCard and PayPal due to conflicts with internal policies. Additionally, the bank proactively acquired over 300 internet domains featuring negative variations of executive names to protect its reputation.
Prior to August 2011, WikiLeaks confirmed that the purported 5 GB data concerning Bank of America was part of deleted communications from a former WikiLeaks volunteer.
Ryan Coogler episode
In March 2022, director Ryan Coogler was incorrectly apprehended on suspicion of bank robbery at a Bank of America location in Atlanta while trying to make a cash withdrawal. After confirming his identity through his California state ID and Bank of America card, he was promptly released. The bank issued an apology, admitting the teller failed to properly verify Coogler’s identification before contacting law enforcement.
Employee deaths
In 2013, a tragic incident occurred when an intern at the London branch passed away after reportedly working until 6 a.m. for three consecutive days, underscoring the demanding work environment. This event ignited discussions about workload limits and prompted competitor Goldman Sachs to impose a maximum of 17 working hours per day for interns.
In 2024, Leo Lukensas III, a former U.S. Army Special Forces member employed within Bank of America’s investment banking sector, died due to heart complications. Reports revealed a culture of extreme workloads exceeding 100 hours weekly, with supervisors encouraging employees to underreport their hours. Lukensas had raised concerns about the excessive demands and was in the process of exiting the company. Following the incident, his supervisor Gary Howe was removed from leadership duties but remained with the firm.
Account closures based on beliefs
Bank of America has been accused of shutting down accounts due to customers’ religious or political affiliations, frequently impacting individuals linked to conservative causes. In 2023, a Christian charity dedicated to aid in Africa experienced an abrupt account termination without any provided explanation. Initially, the bank declined to disclose reasons and subsequently made reportedly false claims about the customer in media outlets. This controversy led to a shareholder proposal during a Bank of America annual meeting. In 2025, former U.S. President Donald Trump publicly accused CEO Brian Moynihan of politically motivated account closures and urged him to restore services to conservative clients.
Privacy concerns
After January 6, 2021, Bank of America faced congressional scrutiny and criticism for voluntarily sharing extensive private information about individuals who shopped at Cabela’s, stayed in Virginia hotels, or used ATMs in Washington, D.C., during January 5–7, 2021. The bank defended its actions by stating that it had authorization to disclose this data despite no legal obligation mandating such sharing.
Competition
Bank of America’s main rivals include 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 buildings
Significant properties occupied by Bank of America encompass:
- Bank of America Tower located in Phoenix, Arizona
- 9454 Wilshire Boulevard in Beverly Hills, California
- Bank of America Center in Los Angeles
- San Francisco landmarks including the Transamerica Pyramid and 555 California Street
- City Place I in Hartford, Connecticut—the tallest building in Connecticut
- Numerous towers and plazas throughout Florida cities such as Fort Lauderdale, Jacksonville, Miami, Orlando, St. Petersburg, and Tampa
- Several key structures in Charlotte, North Carolina—home to its corporate headquarters—including Bank of America Corporate Center, Bank of America Plaza (Charlotte), and Bank of America Tower
- A substantial footprint in Dallas, Midland, San Antonio (Texas), Seattle (Washington), New York City, Albuquerque (New Mexico), Baltimore, St. Louis, Portland (Maine), and Hong Kong
The LEED-certified 1 Bank of America Center in Charlotte’s downtown area was completed in 2010 and includes an attached hotel facility.
Former properties
The Robert B. Atwood Building in Anchorage, Alaska, initially called the Bank of America Center following the tenancy of Security Pacific Bank, was eventually transferred to Northrim Bank, which moved its branch to a nearby location.
The Bank of America Building (Providence), originally opened in 1928 as the Industrial Trust Building and holding the title of Rhode Island’s tallest structure, was occupied by Bank of America between 2004 and 2012. Often referred to as the Superman Building due to its alleged role as the model for the Daily Planet in comic books, it has remained unoccupied since 2013.
Miami Tower in Downtown Miami, historically known as Bank of America Tower and famously appearing in Miami Vice, received recognition from AIA Florida in 2012 as one of the state’s premier architectural icons.
Houston’s TC Energy Center, which bore the name Bank of America Center until 2019, stands as a postmodern architectural icon crafted by architect Philip Johnson, and has been a significant feature of Houston’s skyline since its completion in 1983.
See also
- List of members ATM Industry Association (ATMIA)
- BAML Capital Partners
- Bank of America (Asia)
- Big Four banks
- Calibuso, et al. v. Bank of America Corp., et al.
- List of bank mergers in the United States
- List of largest banks in the United States
Further reading
External links
- DOD Community Bank operated by Bank of America (official website)