Countrywide Home Loans, Inc

Bank of America Corporation
	Logo used since 2018
Company type	Public
Industry	Financial services, Investment banking
Predecessor	NationsBank, Bank of America (original)
Founded	1998; 28 years ago (merger of NationsBank and BankAmerica)
Headquarters	Charlotte, North Carolina, United States
Area served	Worldwide
Products	Commercial banking, investment banking, wealth management
Website	www.bankofamerica.com

Bank of America Corporation (commonly known as Bank of America or abbreviated as BofA or BoA) is a prominent American multinational financial services and investment banking holding company. Its main headquarters is located at the Bank of America Corporate Center in Charlotte, North Carolina, with additional investment banking and support offices based 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 the United States and globally by market capitalization, trailing only JPMorgan Chase. Bank of America is recognized as one of the U.S. Big Four banks and ranks among eight systemically important financial institutions, managing approximately 10% of all U.S. bank deposits. Its primary business lines encompass commercial banking, investment banking, and wealth management.

The institution's roots extend back to 1784 with the establishment of the federally chartered Massachusetts Bank, alongside the 1904-founded Bank of Italy initiated by entrepreneur Amadeo Giannini. Bank of America grew substantially through a series of strategic acquisitions. Giannini’s Bank of Italy, headquartered in San Francisco, initially focused on serving immigrant communities that were largely underserved by other banks. The current corporation emerged when NationsBank acquired BankAmerica for $62 billion in 1998, marking the largest bank acquisition at that point in history. Later mergers integrated Merrill Lynch into its wealth management division and established Bank of America Merrill Lynch (now known as BofA Securities) for investment banking operations.

Bank of America holds a commanding position in both wealth management and investment banking markets. Its investment banking division ranks third worldwide within the elite "Bulge Bracket," while its wealth management sector manages $1.08 trillion in assets under management, placing it second globally after UBS. The bank serves approximately 46 million consumer and small business clients through a network of around 4,600 branches and 16,000 ATMs internationally, although retail locations are not available in every U.S. state.

Due to its extensive market presence, the company has faced numerous legal disputes related to mortgage practices and financial disclosures following the 2008 financial crisis. As of 2024, Bank of America’s market capitalization exceeds $300 billion, positioning it among the largest global corporations by revenue and scale. It was ranked 25th on the Fortune 500 list in 2020 and secured the sixth position on Forbes' Global 2000 rankings for 2023. In recognition of its strategic prowess and competitive edge within financial services, Euromoney named it the "World's Best Bank" in 2018.

History

The origins of Bank of America, Los Angeles date back to its founding 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.

On the East Coast, the lineage begins with the chartering of Massachusetts Bank in 1784—the first federally chartered joint-stock bank in the United States—which later evolved into FleetBoston Financial. Bank of America merged with FleetBoston in 2004. Meanwhile, Charlotte’s banking history includes Commercial National Bank, founded in 1874; it merged with American Trust Company in 1958 to become American Commercial Bank. This entity then combined with Security National Bank two years later to form North Carolina National Bank. In 1991, North Carolina National Bank merged with C&S/Sovran Corporation, resulting in the creation of NationsBank.

The central banking franchise originated in 1910 when Commercial National Bank merged with Continental National Bank of Chicago to form Continental & Commercial National Bank, which eventually developed into 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. In 1922, Bank of America, Los Angeles was created with Giannini holding a minority stake. These two institutions combined in 1928, merging their assets to form what would become the largest banking organization in the United States.

In 1918, Giannini founded Bancitaly Corporation to acquire shares in banks located in New York and abroad.

The 1928 merger between Giannini’s bank and Bank of America, Los Angeles, under the leadership of Orra E. Monnette, resulted in the formation of a new entity. On November 3, 1930, this organization was renamed Bank of America National Trust and Savings Association, uniquely holding this title nationwide at that time. Giannini and Monnette jointly chaired the company, guiding its strategic development and expansion into new markets.

Expansion in California

Following California’s 1909 legislation permitting branch banking, Giannini launched the first branch outside San Francisco in San Jose. By 1929, Bank of America operated 453 branches throughout California with assets surpassing US$1.4 billion. Giannini’s vision was to create a national bank, extending operations across western states and diversifying into insurance through his holding company, Transamerica Corporation.

In 1953, regulatory authorities mandated the separation of Transamerica from Bank of America under the Clayton Antitrust Act. The Bank Holding Company Act of 1956 further restricted banks from owning non-banking subsidiaries such as insurance firms, prompting Transamerica to continue independently in insurance. Additionally, federal laws prevented Bank of America from engaging in interstate banking; consequently, its out-of-state branches were spun off into a separate entity that evolved into First Interstate Bancorp, which was later acquired by Wells Fargo and Company in 1996. It was only during the 1980s that legislative reforms allowed Bank of America to resume expansion beyond California’s borders.

Technological advancements facilitated direct linkage between credit cards and bank accounts. In 1958, Bank of America introduced the BankAmericard, which was rebranded as Visa in 1977. Despite early financial setbacks, it secured a prominent position in the market. Competing regional networks launched Interbank in 1966, which evolved into Master Charge and eventually became Mastercard.

Between 1970 and 1971, Bank of America branches across California experienced 66 violent incidents including bombings and arson attacks, resulting in approximately $500,000 in damages but causing minimal injuries.

Expansion outside California

Following enactment of the Bank Holding Company Act of 1956, BankAmerica Corporation was formed to oversee Bank of America and its subsidiaries.

In 1983, Bank of America extended beyond California through acquisitions, notably influenced by Stephen McLin at Seafirst Corporation based in Seattle. Seafirst faced financial distress due to poor loans linked to the oil sector and became a fully owned subsidiary while retaining its brand until its merger with NationsBank in 1998.

During 1986–1987, BankAmerica incurred substantial losses from bad loans associated with developing nations. This led to CEO Sam Armacost being replaced by his predecessor A. W. (Tom) Clausen. The company’s stock value declined sharply, exposing it to a hostile takeover attempt by First Interstate Bancorp. To counter this threat, BankAmerica divested several units including FinanceAmerica and its brokerage division Charles Schwab and Co., as well as selling its Italian operations to Deutsche Bank. By 1992, the stock had recovered significantly.

A landmark acquisition occurred in 1992 when BankAmerica purchased Security Pacific Corporation along with its subsidiary Security Pacific National Bank—operating across California and parts of the Northwest—marking the largest bank acquisition at that time. Regulatory requirements compelled divestiture of some Security Pacific assets in Washington state to preserve competition. Later that year, BankAmerica entered Nevada by acquiring Valley Bank of Nevada.

In 1994, BankAmerica acquired Continental Illinois National Bank and Trust Co., federally managed and based in Chicago, marking a strategic entry into the Midwest market. Due to restrictive Illinois branch banking laws, Bank of America Illinois initially functioned as a single-branch institution. The company also relocated its national lending division to Chicago to reinforce regional operations.

These mergers reinstated BankAmerica as the largest U.S. bank holding company by deposits; however, it fell behind NationsBank by 1997 and ranked third after First Union Corp. by 1998.

Within capital markets, acquiring Continental Illinois bolstered BankAmerica’s leveraged finance origination and distribution capabilities. Its broker-dealer arm, BancAmerica Securities (formerly BA Securities), developed into a comprehensive investment bank. In 1997, BankAmerica purchased Robertson Stephens—a San Francisco-based investment bank specializing in technology sectors—for $540 million. Robertson Stephens was integrated into BancAmerica Securities and rebranded as "BancAmerica Robertson Stephens," broadening the firm’s investment banking reach.

Merger of NationsBank and BankAmerica

In 1997, BankAmerica extended a $1.4 billion loan to the investment firm D. E. Shaw & Co. for managing several banking operations; nevertheless, Shaw suffered substantial losses amid the 1998 Russian financial crisis. The following year, NationsBank, based in Charlotte, completed the largest bank acquisition of its time by purchasing BankAmerica.

Although NationsBank was technically the surviving institution, the merged organization adopted the widely recognized Bank of America brand. The holding entity was renamed Bank of America Corporation, while NationsBank, N.A. combined with Bank of America NT&SA to create Bank of America, N.A., which continued as the legal banking entity. The headquarters remained in Charlotte, retaining NationsBank’s pre-merger stock price history. SEC filings prior to 1998 continued under NationsBank’s name. Hugh McColl, who served as president, chairman, and CEO of NationsBank, took on those same roles for the new combined company.

By 1998, the newly formed Bank of America controlled assets totaling $570 billion and operated 4,800 branches across 22 states. Federal regulators mandated the divestiture of only thirteen branches located in New Mexico, which were sold to BOK Financial Corporation and now operate under the name "Bank of Albuquerque." Additionally, NationsBanc Montgomery Securities, the broker-dealer arm, was rebranded as Banc of America Securities that year.

Banc of America Securities

Banc of America Securities LLC (BAS) served as Bank of America’s investment banking division from 1998 until its merger with Merrill Lynch in 2008. Headquartered in New York City, BAS engaged in both domestic and international equity and investment banking activities. It was registered as a broker-dealer with the SEC and held memberships with both the NYSE and NASD. The term "Banc" was used deliberately to indicate that BAS was not a bank and therefore its assets were not FDIC insured.

Established in 1998, BAS operated under a model integrating corporate lending with investment banking services, mirroring strategies employed by firms such as Citigroup. Its core competencies included underwriting high-yield debt and leveraged finance transactions, along with industry-specific coverage groups including Healthcare, Consumer & Retail, Media & Telecom, Financial Institutions, Real Estate, and Gaming sectors. The equities and derivatives division gained prominence under leaders like John Sandleman and later Chris Innes—who became one of the youngest Managing Directors and Global Head of Equities before founding his own hedge fund. BAS maintained close collaboration with private equity firms on leveraged deals and had dedicated teams for Mergers & Acquisitions as well as a Transaction Development Group focused on deal origination. The firm also had substantial operations in fixed income, currency markets, and commodities trading.

Between 2007 and 2008, BAS reduced its international footprint by eliminating several European sector groups and downsizing banking along with sales/trading positions across North America and Asia ahead of merging with Merrill Lynch. On October 3, 2008, Bank of America appointed John Thain to oversee the combined Global Corporate and Investment Banking division; he was succeeded by Brian Moynihan in January 2009 after significant losses related to the acquisition. BAS’s SEC registration was officially terminated in January 2011.

BAS maintained offices worldwide including New York, Charlotte, Chicago, San Francisco, Tokyo, Frankfurt, London, and Mumbai. Ultimately, investment banking operations were consolidated at the Bank of America Tower in New York City—a $1 billion skyscraper completed in 2009—bringing together previously scattered offices resulting from multiple mergers.

2005 to 2007

Ken Lewis took over as CEO of Bank of America in 2001, succeeding McColl. In 2004, the bank revealed plans to acquire FleetBoston Financial, a Boston-based institution ranked as the seventh largest U.S. bank, holding $197 billion in assets, serving over 20 million clients, and generating $12 billion in revenue. This $47 billion merger considerably boosted Bank of America's market presence but also resulted in staff reductions.

On June 30, 2005, Bank of America announced its intention to purchase MBNA, a leader in credit cards, for $35 billion through a combination of cash and stock. The Federal Reserve approved this deal in December 2005, with completion in January 2006. This acquisition elevated Bank of America to a top position among domestic and global credit card issuers, managing more than 40 million U.S. accounts and nearly $140 billion in outstanding balances under the newly named FIA Card Services.

Bank of America conducted business in Latin America under the BankBoston name. In May 2006, it reached an agreement with Banco Itaú to sell its Brazilian operations and obtained exclusive rights to market its Chilean and Uruguayan divisions. In exchange, Bank of America received Itaú shares that raised its ownership stake to 11.51%. The transaction encompassed asset management, private banking, credit card services, and corporate banking sectors with extensive customer bases and branch networks. Following the sale, the BankBoston brand was discontinued in these regions.

On November 20, 2006, Bank of America declared its plan to acquire The United States Trust Company from Charles Schwab Corporation for $3.3 billion. This acquisition brought an additional $100 billion in assets under management and broadened the bank's wealth management offerings; the transaction was finalized on July 1, 2007.

The Federal Reserve granted approval on September 14, 2007, for Bank of America's acquisition of LaSalle Bank Corporation from ABN AMRO for $21 billion, with the deal closing on October 1. This purchase added $1.7 trillion in assets and expanded the bank’s operations across Illinois, Michigan, and Indiana by incorporating 411 branches, 17,000 commercial clients, 1.4 million retail customers, and about 1,500 ATMs. It also positioned Bank of America as Chicago's largest bank with a 14% share of deposits, surpassing JPMorgan Chase. LaSalle branches were rebranded under Bank of America on May 5, 2008.

2007–2010 (Subprime mortgage crisis)

During the subprime mortgage crisis, under CEO Ken Lewis, Bank of America completed two critical acquisitions that shaped its path after the crisis. The institution faced numerous legal challenges resulting in settlements totaling tens of billions.

Acquisition of Countrywide Financial

On August 23, 2007, Bank of America announced a $2 billion repurchase agreement involving preferred stock from Countrywide Financial that yielded a 7.25% annual return and included an option to buy common stock at $18 per share.

By January 11, 2008, the bank agreed to acquire Countrywide Financial for $4.1 billion. Despite ongoing FBI investigations into Countrywide’s mortgage lending practices, the acquisition was completed in July 2008. This move significantly enhanced Bank of America's mortgage servicing portfolio and established it as the leading U.S. mortgage originator and servicer with control over approximately 20–25% of the home loan market.

The transaction was executed through Red Oak Merger Corporation, a separate subsidiary designed to contain potential losses and ensure bankruptcy protection. Subsequently, Countrywide was rebranded as Bank of America Home Loans.

In December 2011, Bank of America reached a $335 million settlement with the Justice Department over allegations that Countrywide engaged in discriminatory lending between 2004 and 2008 by steering minority borrowers toward higher-cost subprime loans despite their qualification for prime rates.

Merrill Lynch Acquisition

On September 14, 2008, Bank of America revealed plans to acquire Merrill Lynch & Co., Inc. through an all-stock transaction valued near $50 billion. This deal prevented Merrill from facing imminent insolvency and elevated Bank of America to the position of the world’s largest financial services firm.<ref>Temasek Holdings, Merrill's principal shareholder, briefly held a 3% stake in Bank of America before divesting it at a $3 billion loss in early 2009.<ref> The acquisition received shareholder approval on December 5, 2008, with the merger finalized on January 1, 2009.<ref> Initially, Bank of America aimed to retain key leaders from CEO John Thain’s team at Merrill; however, after Thain’s exit, most associates departed as well, leaving only Tom Montag remaining.<ref>

In its earnings report dated January 16, 2009, Bank of America disclosed substantial fourth-quarter losses amounting to $21.5 billion at Merrill—largely attributed to sales and trading activities—prompting a government-backed capital injection negotiated as part of the acquisition. The bank had attempted to withdraw from the deal in December but was compelled by regulators to proceed. Following this disclosure, Bank of America's share price plummeted to $7.18, marking a 17-year low and reducing its market capitalization below the $50 billion paid for Merrill.<ref>

CEO Kenneth Lewis testified that federal regulators pressured him to finalize the acquisition under threat of job loss and strained regulatory relations.<ref> Congressional subpoenas of internal emails confirmed this pressure; Richmond Federal Reserve President Jeffrey Lacker warned that failure to close the transaction could result in management being "gone." Lewis reportedly requested a government letter to justify the purchase amid shareholder opposition.<ref>

This acquisition established Bank of America as the leading global underwriter of high-yield debt, the third-largest in worldwide equity underwriting, and ninth in mergers and acquisitions advisory.<ref> As credit markets stabilized, Merrill played a significant role in enhancing Bank of America’s profitability—accounting for $3.7 billion of the $4.2 billion profit by Q1 2009 and contributing over 25% of profits by Q3 2009.<ref>

On September 28, 2012, Bank of America resolved a class-action lawsuit related to 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 to conclude, involving multiple financial firms and investors who had viewed Bank of America stock as a stable investment.<ref>

Federal Troubled Asset Relief Program

On January 16, 2009, Bank of America secured $20 billion in capital along with guarantees covering up to $118 billion in potential losses from the U.S. government under the Troubled Asset Relief Program (TARP), supplementing the $25 billion previously obtained in late 2008. This infusion was vital for maintaining Bank of America's merger with Merrill Lynch. Although CEO Ken Lewis asserted that TARP facilitated increased lending activity, congressional skepticism persisted due to reports indicating loan denials and tighter credit conditions affecting small businesses and credit card customers.

In March 2009, Bank of America enhanced its financial position further by receiving an additional $5.2 billion through the bailout of American International Group. However, The Wall Street Journal disclosed that the bank was operating under a confidential memorandum of understanding (MOU) with U.S. regulators that required board restructuring and improvements in risk management and liquidity oversight. This resulted in six directors resigning and the establishment of a Regulatory Impact Office tasked with meeting compliance deadlines to avoid sanctions.

On December 2, 2009, Bank of America announced plans to fully repay the total $45 billion received via TARP by drawing on $26.2 billion in surplus liquidity alongside $18.6 billion from Tier 1 capital securities. The repayment was completed on December 9. CEO Ken Lewis underscored the institution’s accountability toward taxpayers and highlighted ongoing lending efforts as indicators of financial recovery and dedication to fulfilling obligations related to federal assistance.

Bonus resolution

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 the Merrill acquisition. The matter drew scrutiny from New York Attorney General Andrew Cuomo, who condemned the timing and lack of transparency as a failure in corporate responsibility. Congressman Kucinich indicated that additional penalties might be forthcoming. However, on August 5, federal judge Jed Rakoff initially declined to approve the proposed settlement.

During a hearing held on August 10, Judge Rakoff expressed strong disapproval of the bonus payments. The total amount distributed was $3.6 billion, including $850 million in guaranteed sums; approximately 39,000 employees received an average bonus of $91,000, with 696 individuals awarded more than $1 million each, and one person receiving in excess of $33 million.

On September 14, the judge rejected the settlement and mandated a trial by February 1, 2010. He criticized that the penalty would ultimately be borne by shareholders—the very parties harmed by the nondisclosure—and denounced the settlement as cynical, benefiting both the SEC and management at shareholders’ expense.

In February 2010, Judge Rakoff reluctantly sanctioned a revised agreement involving a $150 million fine, which was allocated solely to affected Bank of America shareholders. He described it as "half-baked justice" but acknowledged it as an improvement over the previous offer. This legal proceeding was identified as SEC v. Bank of America Corp., 09-cv-06829.

Additionally, congressional inquiries were undertaken by the United States House Committee on Oversight and Government Reform, chaired by Edolphus Towns, along with its Domestic Policy Subcommittee led by Kucinich, concentrating on executive compensation and disclosure practices connected to this episode.

Fraud allegations

In 2010, federal authorities accused Bank of America of defrauding educational institutions, hospitals, and various state and local governments through misconduct related to municipal bond investment proceeds. To resolve these claims, the bank agreed to pay $137.7 million—including $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; meanwhile, other bankers remained under investigation.

On October 24, 2012, Manhattan’s chief federal prosecutor filed suit alleging that Bank of America caused taxpayer losses exceeding $1 billion by selling toxic mortgage securities through Countrywide Financial to Fannie Mae and Freddie Mac in a scheme referred to as 'Hustle' (High Speed Swim Lane). Nevertheless, on May 23, 2016, the Second U.S. Circuit Court of Appeals determined that the evidence supported only a deliberate breach of contract—not fraud—due to an absence of intent to deceive when providing these mortgages. This decision overturned a $1.27 billion fine imposed under the Financial Institutions Reform, Recovery and Enforcement Act.

Executive leadership transition

Ken Lewis stepped down as CEO on December 31, 2009, after relinquishing his chairman role amid controversy and legal challenges stemming from the Merrill Lynch acquisition. Brian Moynihan assumed the positions of president and CEO on January 1, 2010. Following this change in leadership, Bank of America experienced reductions in credit card charge-offs and delinquency rates and successfully repaid the $45 billion obtained from the Troubled Assets Relief Program.

Workforce Reductions (2011 to 2014)

Beginning in 2011, Bank of America embarked on a series of staff cutbacks, reducing its workforce by about 36,000 employees to secure $5 billion in annual savings by 2014. By the close of 2012, the bank accelerated this process, cutting 16,000 positions ahead of schedule as part of its Project New BAC initiative aimed at cost reduction. These measures were driven by challenges such as regulatory shifts and a sluggish economic environment.

In early 2014, Berkshire Bank acquired 20 Bank of America branches located in New York for $14.4 million. Later that year, Huntington Bancshares purchased approximately twenty-four branches in Michigan, subsequently rebranding them as Huntington National Bank locations.

The bank’s strategic focus increasingly shifted toward digital innovation; by 2014, it boasted 31 million active online users alongside 16 million mobile users. This digital emphasis contributed to a decline in retail branch numbers from roughly 4,900 to 4,411 by mid-2018, while mobile user figures expanded to 25.3 million, highlighting changing customer behaviors and efforts to enhance operational efficiency.

Divestment from China Construction Bank

In 2005, Bank of America invested $3 billion to acquire a 9% ownership interest in China Construction Bank, one of China's major banking institutions. This marked the bank’s largest commitment to the Chinese market, supported by its offices in Hong Kong, Shanghai, and Guangzhou. The bank sought to grow its presence in China through this stake. In recognition of its achievements, it received the Project Finance Deal of the Year award at the ALB Hong Kong Law Awards in 2008. By November 2011, Bank of America announced plans to sell most of its shares and completed its full exit by September 2013, disposing of the remaining holdings for up to $1.5 billion.

$17 Billion Settlement with U.S. Justice Department

In August 2014, Bank of America consented to a settlement nearing $17 billion that addressed claims linked to toxic mortgage-backed securities, including subprime loan portfolios. The agreement encompassed $9.65 billion in penalties alongside $7 billion allocated for relief benefiting homeowners, borrowers, pension funds, and municipalities impacted by these securities. This settlement ranked among the largest corporate resolutions in U.S. history and had notable effects on the bank’s financial results. Whistleblowers Shareef Abdou (senior vice president), Robert Madsen (appraiser), and Edward O'Donnell (Fannie Mae official) played crucial roles by providing information that facilitated prosecution efforts; collectively, they received awards totaling $170 million.

DOD Community Bank

In collaboration with the United States Department of Defense, Bank of America established DOD Community Bank ("Community Bank"), which delivers comprehensive banking services to military personnel 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. Despite being operated by Bank of America, Community Bank accounts remain distinct and are not interchangeable with those at standard Bank of America branches. Deposits held within Community Bank are insured up to $250,000 by the Federal Deposit Insurance Corporation, even though none of these branches are physically located within U.S. territory.

Refusal to finance manufacturers of military-style firearms

In April 2018, Bank of America declared it would stop providing financing to producers of military-style firearms such as the AR-15 rifle. This decision was influenced by recent mass shooting incidents and the bank’s dedication to "help in any capacity possible" to curb gun violence.

Renewed growth phase (2015–present)

Beginning in 2015, Bank of America resumed its organic expansion by launching retail branches in new metropolitan areas like Denver, Minneapolis–Saint Paul, and Indianapolis, entering into competition with other major banks such as Chase and Wells Fargo. The Twin Cities region also includes U.S. Bancorp, a noteworthy competitor outside the Big Four.

In January 2018, the bank broadened its retail footprint to include Pittsburgh, complementing its pre-existing commercial lending and investment activities there. Pittsburgh had been one of the largest U.S. cities lacking Big Four retail banking presence, with local dominance held by PNC Financial Services. By 2020, Bank of America ranked as the 16th largest bank in Pittsburgh by deposit volume, improving to 12th place by 2021 despite strong competition from PNC and BNY Mellon.

February 2018 saw the bank announce plans to extend operations into Ohio’s three largest cities: Cleveland, Columbus, and Cincinnati, markets traditionally led by Chase. Columbus functions as the bank’s Ohio hub due to its population size and an established credit card call center located in suburban Westerville. Within twelve months, Bank of America rose to become the fifth largest bank by deposits in Columbus, surpassing US Bancorp and KeyBank. As of 2021, it holds the ninth position statewide.

In January 2020, Bank of America recruited additional advisors specializing in ultra-high-net-worth clients, strengthening its wealth management capabilities.

Operations

Bank of America generates approximately 90% of its revenue within the United States, concentrating on preserving its status as the nation’s top bank through targeted acquisitions.

Consumer Banking

The Consumer Banking segment, which is the company’s largest division, delivers financial products and services to individual consumers and small businesses. These offerings include banking accounts, investment options, merchant services, and various lending products such as mortgages, credit cards, and business loans. Following the acquisition of Merrill Lynch, it operates Merrill Edge, a dedicated investment services platform. In 2016, Consumer Banking accounted for 38% of total revenue, deriving income from interest earnings, service charges, and fees. The division also manages mortgage servicing and competes directly with the retail banking units of Citigroup, JPMorgan Chase, and Wells Fargo. Its network comprises over 4,600 retail financial centers along with roughly 15,900 ATMs.

As a member of the Global ATM Alliance, Bank of America customers benefit from reduced ATM withdrawal fees internationally among partner banks; however, foreign currency conversion fees continue to apply.

Global Banking

The Global Banking division provides a suite of investment banking and lending solutions for corporations through its Global Corporate Banking, Global Commercial Banking, Business Banking, and Global Investment Banking units. This segment contributed 22% of total revenue in 2016.

Before acquiring Merrill Lynch, investment banking activities were conducted under Banc of America Securities LLC. Currently integrated within Merrill Lynch, the division offers advisory services for mergers and acquisitions, underwriting, capital markets solutions, as well as sales and trading in both fixed income and equity securities. Core competencies include Leveraged Finance, Syndicated Loans, and mortgage-backed securities. Bank of America Merrill Lynch is headquartered in New York City and boasts one of Wall Street’s largest research teams.

Global Wealth and Investment Management

The Global Wealth and Investment Management (GWIM) segment oversees investment portfolios for both institutional and individual clients, encompassing Merrill Lynch Global Wealth Management and U.S. Trust. Contributing 21% to the firm's revenue in 2016, GWIM is recognized as one of the leading wealth managers in the United States, managing client assets exceeding $2.5 trillion. Its core business units include Premier Banking & Investments, The Private Bank, Family Wealth Advisors, and Bank of America Specialist.

Global Markets

Serving institutional customers, the Global Markets division provides services such as securities trading, market research, securities servicing, market making, and risk mitigation through derivatives. This division generated 19% of the company’s total revenue in 2016.

Labor

On April 9, 2019, Bank of America declared an increase in its minimum wage to $17 per hour effective May 1, 2019, with plans to reach $20 per hour by 2021 as part of efforts to improve employee compensation.

Offices

The main corporate headquarters of Bank of America is located at the Bank of America Corporate Center in Charlotte, North Carolina—a high-rise building completed in 1992 situated at 100 North Tryon Street.

In 2012, Bank of America discontinued its membership with the American Legislative Exchange Council (ALEC).

International offices

The Global Corporate and Investment Banking division operates its U.S. base in Charlotte, with European headquarters situated in Dublin and Asian offices located in Hong Kong and Singapore.

Corporate governance

Board of Directors
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 invested significantly in initiatives focused on community development and environmental sustainability. In 1998, it committed $350 billion over a decade to support affordable housing, mortgage lending, small business growth, and employment opportunities within underserved communities. This was followed by a $750 million pledge in 2004 aimed at community lending and affordable housing programs.

To promote environmentally responsible behavior, the bank offered incentives such as rebates to employees who purchased hybrid vehicles and provided clients with rebates or reduced interest rates for energy-efficient homes. Collaborations like the one with Brighter Planet introduced environmentally conscious credit and debit cards that fund renewable energy projects.

The bank’s philanthropic activities include contributions to health centers in Massachusetts and a $1 million donation to homeless shelters in Miami in 2007. In India, under Kaku Nakhate’s leadership as president and head of BoA India since 2010, the company supports cultural and artistic endeavors including sponsorships like that of the Children’s Museum at CSMVS (formerly Prince of Wales Museum).

Parmalat lawsuit

After Parmalat SpA declared bankruptcy in 2003, the Italian dairy corporation initiated a $10 billion lawsuit against Bank of America, accusing the bank of benefiting from insider knowledge about Parmalat’s financial difficulties. The conflict was resolved in July 2009 when Bank of America agreed to pay Parmalat $98.5 million. In 2011, an Italian court cleared Bank of America and several other banks of charges related to aiding Parmalat in fraud concealment and lapses in internal controls, although certain allegations persisted in Parma.

Mortgage abuses

In August 2011, American International Group filed a $10 billion lawsuit against Bank of America, alleging mortgage debt fraud. Another legal action involved $57.5 billion worth of mortgage-backed securities sold to Fannie Mae and Freddie Mac. By December 2011, Bank of America settled for $335 million to resolve discrimination claims linked to Countrywide Financial, which had been acquired by BofA.

In September 2012, Bank of America agreed to a $2.4 billion settlement in a shareholder class action accusing the bank of providing misleading information concerning the Merrill Lynch acquisition. On February 9, 2012, BofA joined four other major mortgage servicers in entering the National Mortgage Settlement, committing to deliver $26 billion in relief measures and adhere to new servicing regulations—marking the second-largest civil settlement in U.S. history.

Federal prosecutors filed a $1 billion civil lawsuit in October 2012 against Bank of America for mortgage fraud tied to Countrywide’s high-risk loans guaranteed by Fannie Mae and Freddie Mac. BofA resolved this matter in March 2014 by paying $6.3 billion and repurchasing $3.2 billion worth of mortgage bonds.

In April 2014, former CFO Joe L. Price consented to pay $7.5 million to settle accusations that BofA management withheld critical information about the Merrill Lynch merger. Later that year, Bank of America finalized a landmark $16.65 billion settlement with the U.S. Department of Justice regarding the sale of risky mortgage-backed securities from acquisitions such as Merrill Lynch and Countrywide. This agreement included $7 billion allocated for consumer relief and $9.65 billion in penalties—the largest federal settlement ever imposed on a single company—emphasizing the substantial financial and regulatory risks linked to prior business activities.

Settlement with homeowners

On March 14, 2011, the hacker collective Anonymous published emails purportedly from Brian Penny, a former LPI Specialist at Balboa Insurance—a previous subsidiary of Bank of America later sold to Australian reinsurer QBE—alleging "corruption and fraud." Subsequently, on April 7, 2014, Bank of America and QBE reached a $228 million settlement resolving a related class-action lawsuit.

Unfair billing practices

In April 2014, the Consumer Financial Protection Bureau (CFPB) mandated Bank of America to provide roughly $727 million in consumer relief due to deceptive marketing tactics and unlawful billing related to credit card add-on products. Approximately 1.4 million customers were exposed to misleading telemarketing scripts, while around 1.9 million were charged for unauthorized credit monitoring services they never received. The bank imposed fees without proper authorization, leading to unjust charges and interest accruals. In May 2022, the CFPB imposed a $10 million fine on Bank of America for illegal wage garnishments.

Discrimination

In 2018, former high-ranking executive Omeed Malik initiated a $100 million arbitration claim through FINRA against Bank of America following an investigation into alleged sexual misconduct. His lawsuit included allegations of retaliation, breach of contract, and discrimination linked to his Muslim heritage. Malik ultimately secured a settlement valued in the eight figures by July 2018.

South African currency manipulation

In April 2015, South Africa's Competition Commission launched an inquiry into major financial institutions, including Bank of America, over cartel behavior in the foreign exchange market impacting the South African rand. The investigation focused on traders accused of manipulating prices for bids, offers, and bid-offer spreads across spot, futures, and forward currency transactions. These activities resulted in distorted foreign exchange rates and artificially increased trading expenses 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 "deceptive practices that harmed hundreds of thousands of consumers." These violations involved charging insufficient funds fees twice, withholding credit card rewards, and creating unauthorized accounts without customer consent.

Consumer credit controversies

In January 2008, Bank of America informed certain customers—despite no payment delinquencies—that their interest rates would more than double, reaching as high as 28%, sparking criticism for raising rates on customers in good standing without providing clear justification. A viral September 2009 YouTube video by customer Ann Minch opposing a rate hike led to her interest rate being reduced following widespread media coverage. In 2010, the bank faced backlash over allegations of foreclosing on three properties based on faulty legal documentation.

State of Arizona investigation

In 2010, the state of Arizona launched an investigation into Bank of America for allegedly misleading homeowners seeking mortgage modifications. The attorney general accused the bank of repeatedly deceiving borrowers during the modification process. In response, Bank of America offered some loan adjustments contingent upon homeowners removing negative online reviews about the bank.

Investment in coal mining

On May 6, 2015, Bank of America declared a new policy aimed at decreasing its financial involvement with coal companies. This decision responded to advocacy from universities and environmental organizations and aligned with the bank’s broader approach to gradually reduce credit exposure within the coal mining sector.

Wikileaks incident

In October 2009, WikiLeaks founder Julian Assange claimed to possess a 5 GB hard drive belonging to a Bank of America executive, with intentions to disclose its contents publicly. By November 2010, Assange announced plans to reveal information about major U.S. banks, triggering a 3.2% drop in Bank of America’s stock price.

By December 2010, the bank had stopped processing transactions associated with WikiLeaks, joining other institutions such as MasterCard and PayPal in blocking payments due to perceived breaches of policy.

Furthermore, Bank of America acquired over 300 internet domain names containing negative variations of executive names—including CEO Brian Moynihan—to mitigate anticipated reputational risks linked to WikiLeaks disclosures.

Prior to August 2011, WikiLeaks confirmed that the 5 GB data from Bank of America formed part of communications deleted by former volunteer Daniel Domscheit-Berg.

Ryan Coogler incident

In March 2022, filmmaker Ryan Coogler was mistakenly detained by police at a Bank of America branch in Atlanta when he attempted to withdraw money. Although he provided both his California state identification and Bank of America card, the teller did not confirm his identity before contacting law enforcement. The bank subsequently issued an apology for this mistake.

Employee fatalities

A London intern at Bank of America passed away in 2013 after reportedly working until 6 a.m. for three consecutive days, raising serious concerns about excessive working hours. This tragedy sparked industry-wide discussions and prompted competitors such as Goldman Sachs to limit intern workdays to 17 hours.

In 2024, Leo Lukensas III, a U.S. Army Special Forces veteran employed in the investment banking division, died due to heart-related complications. Investigations revealed a demanding work culture with workloads surpassing 100 hours per week, alongside allegations that supervisors encouraged employees to underreport hours to human resources. Lukensas had expressed plans to resign because of these conditions. Following the event, his manager was removed from leadership duties but remained employed by the company.

Debanking

Bank of America has been accused of closing accounts based on customers' religious or political affiliations, particularly targeting individuals supporting conservative causes. In 2023, a Christian charity providing aid to Africa reportedly had its account shut down without explanation. Initially, the bank declined to comment but later made contested claims against the organization in the media. This controversy led to a shareholder proposal at the annual meeting. In 2025, former U.S. President Donald Trump alleged that CEO Brian Moynihan engaged in politically motivated debanking and called on the bank to serve conservative clients.

Customer privacy

After the January 6, 2021 events, Bank of America faced criticism and investigation for voluntarily sharing extensive private customer data related to transactions made at certain locations and dates, despite lacking any legal obligation to do so. The bank defended its conduct by stating it was authorized to disclose this information.

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.

Notable buildings

Prominent Bank of America properties consist of:

Bank of America Tower – Phoenix, Arizona
9454 Wilshire Boulevard – Beverly Hills, California
Bank of America Center – Los Angeles
Transamerica Pyramid and 555 California Street (former headquarters) – San Francisco
City Place I – Hartford, Connecticut (the tallest building in the state)
Various towers across Florida cities: Fort Lauderdale, Jacksonville, Miami, Orlando, St. Petersburg, Tampa
Significant buildings located in Atlanta, Chicago (LaSalle National Bank Building), Portland (One City Center), Baltimore, St. Louis, Albuquerque, and New York City
Charlotte, North Carolina: Bank of America Corporate Center (corporate headquarters), along with several plazas and towers including Legacy Union
Texas sites: Dallas, Midland, San Antonio
Seattle: Bank of America Fifth Avenue Plaza and Columbia Center
International location: Bank of America Tower (Hong Kong)

In 2010, Bank of America completed the LEED-certified 1 Bank of America Center situated in Charlotte’s downtown area, expanding its collection of environmentally sustainable properties.

Former Structures

Located in Anchorage, Alaska, the Robert B. Atwood Building was initially known as the Bank of America Center following the tenancy of Security Pacific Bank. Subsequently, it was sold to Northrim Bank, a financial institution based in Alaska, which then moved its branch to a location across the street.

The Bank of America Building (Providence), originally called the Industrial Trust Building and inaugurated in 1928 as Rhode Island’s tallest structure, was occupied by Bank of America from 2004 until 2012. Familiarly referred to as the Superman Building due to its supposed influence on the design of the Daily Planet in comic lore, it has remained unoccupied since 2013.

Situated in Downtown Miami, Miami Tower—formerly known as Bank of America Tower and famously featured in Miami Vice—was honored by the AIA Florida Chapter in 2012 as one of the state’s premier architectural icons.

In Houston, Texas, the TC Energy Center, which carried the name Bank of America Center until 2019, stands as a postmodern architectural masterpiece created by Philip Johnson. It continues to be a significant element of Houston’s central skyline.

External links

DOD Community Bank operated by Bank of America (official site)