History of Bank of America Essay

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History of Bank of America Bank of America wasn’t always Bank of America. Believe it or not it used to be Bank of Italy. Back in 1904, Amadeo Giannini founded the Bank of Italy in San Francisco. The bank of Italy provided service to immigrants settling in the U.S.They were originally denied service by aristocratic American banks. In 1922 Giannini established Bank of America and Italy in Italy by buying Banca Dell’italia Meridionale. In 1927 Giannini merged Bank of Italy with Liberty Bank of America. Which made the bank of Italy National trust and savings association. In 1928 A.P. Giannini merged with Bank of America, Los Angeles. He renamed the Bank of Italy on November 3rd, 1930 calling it Bank of America. Following the passage of the Bank Holding Company Act Of 1956, BankAmerica Corporation was established for the purpose of owning and operation of BankAmerica and its branches/outlets. Bank of America expanded outside California in 1983 with its acquisition of Seafirst corporation of Seattle, Washington. BankAmerica continued to operate its new branch as Seafirst rather than BankAmerica until the 1998 merger with NationsBank. In 1986-87 the Bank suffered major losses of loans in the Third world namely, Latin America. Which led to the huge decline of BankAmerica stock, making it vulnerable to hostile takeover. By the time of the 1987 stock market crash, BankAmerica share price was as low as $8 but by 1992 it rebounded to become one of the biggest gainers of that half-decade. BankAmerica’s next acquisition came 1992. The company acquired its California rival Security Pacific Corporation. Then BankAmerica merged with Continental Illinoise National Bank. This merger helped BankAmerica Corporation to once again become the largest U.S bank holding company in terms of deposits. BankAmerica was acquired by NationsBank of Charlotte in October 1998. The merged bank

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