History of Bank of America in Timeline
Bank of America, headquartered in Charlotte, North Carolina, is a leading multinational investment bank and financial services company. Formed through the merger of NationsBank and Bank of America in 1998, it stands as the second-largest banking institution in the US and globally by market capitalization, trailing only JPMorgan Chase. As a key player among the Big Four US banks, it holds approximately 10% of all American bank deposits, competing directly with JPMorgan Chase, Citigroup, and Wells Fargo. Its core financial services encompass commercial banking, wealth management, and investment banking.
October 17, 1904: Bank of Italy Founded
The history of Bank of America can be traced back to October 17, 1904, when Amadeo Pietro Giannini established the Bank of Italy in San Francisco.
1904: Bank of Italy Founded
Amadeo Pietro Giannini founded the Bank of Italy in San Francisco in 1904, aiming to provide banking services to Italian immigrants facing discrimination.
1909: Branch Banking Expansion
Following the 1909 California legislation allowing branch banking, Giannini established the bank's first branch outside San Francisco in San Jose in 1909.
1910: Formation of Continental & Commercial National Bank
The central part of Bank of America's franchise can be traced back to 1910 when Commercial National Bank and Continental National Bank of Chicago merged to establish Continental & Commercial National Bank, which later became Continental Illinois National Bank & Trust.
1918: Formation of Bancitaly Corporation
A. P. Giannini established Bancitaly Corporation in 1918, which acquired stocks of various banks in New York City and internationally.
1922: Bank of America, Los Angeles Established
Bank of America, Los Angeles, was established in 1922, with Amadeo Pietro Giannini as a minority investor.
1922: Bank of America, Los Angeles Established
Bank of America, Los Angeles, was established in 1922, with Amadeo Pietro Giannini as a minority investor.
1923: Bank of America, Los Angeles Founded
Bank of America, Los Angeles, was established in 1923.
1925: Bank of Italy Building
The 1925 Bank of Italy Building became a prominent landmark in downtown San Jose.
March 1, 1927: Federal Charter Grant
The merged company resulting from the NationsBank acquisition operates under Federal Charter 13044, which was originally granted to Bank of Italy on March 1, 1927.
1928: Industrial Trust Building Opens in Providence
The Bank of America Building in Providence, originally known as the Industrial Trust Building, opened in 1928. It remains the tallest building in Rhode Island. Through a series of mergers, the building was later called the Industrial National Bank building and the Fleet Bank building.
1928: Merger of Bank of Italy and Bank of America, Los Angeles
In 1928, Giannini merged his Bank of Italy with Bank of America, Los Angeles, led by Orra E. Monnette.
1928: Acquisition by Bank of Italy
Bank of Italy of San Francisco acquired Bank of America, Los Angeles in 1928, later adopting the Bank of America name two years later.
1928: Merger and Expansion
Giannini merged his Bank of Italy with Bank of America, Los Angeles in 1928, consolidating with other bank holdings to form what would become the largest banking institution in the country.
1929: Banking Offices and Resources
By 1929, the bank had expanded to 453 banking offices across California, boasting aggregate resources exceeding US$1.4 billion.
November 3, 1930: Bank of America National Trust and Savings Association
On November 3, 1930, Bank of Italy was renamed Bank of America National Trust and Savings Association, the only bank with such a designation in the United States at the time.
1947: Banco de Boston de Brazil Founded
In 1947, Banco de Boston de Brazil was established, marking the beginning of BankBoston's presence in the region.
1953: Separation of Transamerica Corporation and Bank of America
Regulators enforced the separation of Transamerica Corporation and Bank of America in 1953 under the Clayton Antitrust Act.
1956: BankAmerica Corporation Established
After the Bank Holding Company Act of 1956 was passed, BankAmerica Corporation was created to own and operate Bank of America and its subsidiaries.
1956: Bank Holding Company Act
The Bank Holding Company Act of 1956 prohibited banks from owning non-banking subsidiaries, leading to the separation of Bank of America and Transamerica, with the latter remaining in the insurance sector.
1958: Formation of American Commercial Bank
Commercial National Bank, founded in Charlotte in 1874, merged with American Trust Company in 1958, forming American Commercial Bank.
1958: Introduction of BankAmericard
Bank of America introduced the BankAmericard in 1958, which later became Visa in 1977.
1966: Introduction of Interbank and Master Charge
A coalition of regional bankcard associations introduced Interbank in 1966 to compete with BankAmericard, which later became Master Charge in the same year and eventually Mastercard in 1979.
February 1970: Attacks on Bank of America Branches
From February 1970 through September 1971, there were numerous attacks, including bombings and arson fires, on Bank of America branches in California.
September 1971: Attacks on Bank of America Branches
From February 1970 through September 1971, there were numerous attacks, including bombings and arson fires, on Bank of America branches in California.
1977: BankAmericard Renamed to Visa
BankAmericard changed its name to Visa in 1977.
1979: Master Charge Becomes Mastercard
Master Charge, introduced in 1966, was renamed Mastercard in 1979.
1983: TC Energy Center Completed in Houston
TC Energy Center, formerly known as Bank of America Center, was completed in 1983. Designed by architect Philip Johnson, the building's postmodern architecture has made it a recognizable feature of the Houston skyline.
1983: Bank of America Expansion
In 1983, Bank of America expanded outside of California by acquiring Seafirst Corporation and its subsidiary, Seattle-First National Bank.
1986: Financial Losses and Restructuring
BankAmerica experienced substantial financial losses in 1986 and 1987 due to bad loans, leading to the firing of CEO Sam Armacost. The company sold off several subsidiaries to mitigate the losses and avoid a hostile takeover.
1987: Financial Losses and Restructuring
BankAmerica experienced substantial financial losses in 1986 and 1987 due to bad loans, leading to the firing of CEO Sam Armacost. The company sold off several subsidiaries to mitigate the losses and avoid a hostile takeover.
1991: Formation of NationsBank
North Carolina National Bank merged with C&S/Sovran Corporation of Atlanta and Norfolk in 1991, resulting in the creation of NationsBank.
1992: Stock Rebound
By 1992, BankAmerica's stock, which had plummeted in 1987, had rebounded significantly, making it one of the top-performing stocks of the period.
1992: Completion of Bank of America Corporate Center
In 1992, Bank of America completed its principal executive offices in the Bank of America Corporate Center located at 100 North Tryon Street, Charlotte, North Carolina.
1992: Acquisition of Security Pacific Corporation
In a historic move, BankAmerica acquired Security Pacific Corporation and its subsidiary, Security Pacific National Bank, along with other banks in several western states. This was the biggest bank acquisition at the time.
1994: Acquisition of Continental Illinois National Bank and Trust Co.
BankAmerica acquired Continental Illinois National Bank and Trust Co. of Chicago in 1994 after the federal government had operated it for almost a decade. This acquisition was significant because no other bank had the capacity to bail out Continental at the time.
1996: Acquisition of First Interstate Bancorp
Due to federal banking regulations, Bank of America's domestic banks outside California operated as a separate entity, First Interstate Bancorp, which was later acquired by Wells Fargo and Company in 1996.
1996: ABN AMRO Acquires Chicago Marathon
In 1996, ABN AMRO acquired the Chicago Marathon, which later became part of Bank of America's portfolio through the LaSalle Bank acquisition.
1997: Acquisition of Robertson Stephens
BankAmerica acquired the San Francisco-based investment bank Robertson Stephens for $540 million, which specialized in high technology, and merged it with its existing broker-dealer, BancAmerica Securities, to form "BancAmerica Robertson Stephens".
1997: Loan to D.E. Shaw & Co.
BankAmerica provided a $1.4 billion loan to investment firm D. E. Shaw & Co., but the firm experienced substantial losses due to the 1998 Russia bond default.
1997: Decline in Ranking
Despite becoming the largest U.S. bank holding company by deposits, BankAmerica dropped to second place in 1997, overtaken by NationsBank Corporation.
1998: Merger Integration
Despite NationsBank being the surviving entity, the merged bank adopted the more recognizable Bank of America name. The holding company was renamed Bank of America Corporation, and the headquarters moved to Charlotte.
1998: Bank of America Corporation Formation
In 1998, BankAmerica merged with NationsBank, resulting in the creation of Bank of America Corporation, in the largest bank acquisition in history at that time.
1998: Acquisition by NationsBank
In the largest bank acquisition in history at the time, NationsBank acquired BankAmerica in 1998.
1998: Merger with NationsBank
Bank of America continued to operate Seafirst under its own name until 1998 when it merged with NationsBank.
1998: Decline in Ranking
BankAmerica continued to fall behind in rankings, slipping to third place in 1998 behind First Union Corp.
1998: Bank of America Corporation Formation
In 1998, BankAmerica merged with NationsBank, resulting in the creation of Bank of America Corporation, in the largest bank acquisition in history at that time.
1998: Post-Merger Divestitures and Renaming
Following the merger, federal regulators required the divestiture of 13 branches in New Mexico. Bank of America also renamed NationsBanc Montgomery Securities to Banc of America Securities.
1998: Commitment to Affordable Mortgages and Housing
In 1998, Bank of America committed $350 billion over ten years to provide affordable mortgages, build affordable housing, support small businesses, and create jobs in disadvantaged neighborhoods.
2001: Ken Lewis Appointed CEO
Hugh McColl stepped down as CEO of Bank of America in 2001 and named Ken Lewis as his successor.
2003: Parmalat Bankruptcy and Lawsuit
Following the bankruptcy of Italian dairy giant Parmalat in 2003, the company filed a $10 billion lawsuit against Bank of America. Parmalat alleged that the bank had profited from prior knowledge of their financial struggles.
2004: Discrimination in Mortgage Lending by Countrywide Financial
Between 2004 and 2008, Countrywide Financial, later acquired by Bank of America, engaged in discriminatory lending practices against Hispanic and African-American homebuyers.
2004: Pledge for Community Development Lending
In 2004, Bank of America pledged $750 million over ten years for community development lending and affordable housing programs.
2004: Acquisition of FleetBoston Financial
In 2004, Bank of America acquired FleetBoston Financial, the seventh largest bank in the United States at that time, for $47 billion.
2004: Sale of Risky Mortgage-Backed Securities
From 2004 to 2008, Bank of America, along with Merrill Lynch and Countrywide, engaged in the sale of $965 billion of risky mortgage-backed securities. These securities played a significant role in the subsequent financial crisis.
2004: Bank of America Leases Industrial Trust Building
Bank of America leased the Industrial Trust Building from 2004 to 2012.
2004: Merger with FleetBoston
Bank of America merged with FleetBoston in 2004, incorporating the lineage of Massachusetts Bank, the first federally chartered joint-stock owned bank in the United States, established in 1784.
2004: Discriminatory Lending Practices at Countrywide Financial Begin
A federal probe revealed that Countrywide Financial engaged in discriminatory lending practices from 2004, steering qualified African-American and Latino borrowers towards higher-interest-rate subprime loans.
June 30, 2005: Acquisition of MBNA Announced
Bank of America announced its intention to acquire credit card giant MBNA for $35 billion in cash and stock on June 30, 2005.
December 15, 2005: Merger Approval for MBNA Acquisition
The Federal Reserve Board granted final approval for the Bank of America and MBNA merger on December 15, 2005.
2005: Acquisition of Stake in China Construction Bank
In 2005, Bank of America acquired a 9% stake in China Construction Bank for US$3 billion, marking its largest investment in China's banking sector to date.
January 1, 2006: MBNA Acquisition Completed
The acquisition of MBNA by Bank of America, making Bank of America a leading credit card issuer, was finalized on January 1, 2006.
May 2006: Agreement to Sell BankBoston Operations
Bank of America reached an agreement with Banco Itaú in May 2006 to sell its BankBoston operations in Brazil. Itaú also received the exclusive right to acquire Bank of America's operations in Chile and Uruguay.
August 2006: Sale of BankBoston Operations Finalized
In August 2006, the agreement between Bank of America and Banco Itaú for the sale of BankBoston operations was officially signed.
November 20, 2006: Bank of America Announces Acquisition of US Trust
On November 20, 2006, Bank of America declared its intention to purchase The United States Trust Company from Charles Schwab Corporation for $3.3 billion.
July 1, 2007: Bank of America Finalizes Acquisition of US Trust
Bank of America successfully completed the acquisition of The United States Trust Company on July 1, 2007, adding over 150 years of experience and about $100 billion in assets under management.
August 23, 2007: Bank of America Announces $2 Billion Repurchase Agreement with Countrywide Financial
On August 23, 2007, Bank of America entered into a $2 billion repurchase agreement for Countrywide Financial, designed to provide a 7.25% annual return on investment and an option to purchase common stock.
September 14, 2007: Bank of America Receives Approval to Acquire LaSalle Bank
The Federal Reserve granted its approval for Bank of America to acquire LaSalle Bank Corporation from ABN AMRO on September 14, 2007, in a deal valued at $21 billion.
October 1, 2007: Bank of America Completes Acquisition of LaSalle Bank
The acquisition of LaSalle Bank Corporation by Bank of America was finalized on October 1, 2007, following approval from a Dutch court.
December 31, 2007: Countrywide Financial Reports Mortgage Servicing Data
As of December 31, 2007, Countrywide Financial reported providing mortgage servicing for nine million mortgages, with a combined value of $1.4 trillion.
2007: Environmental Initiatives and Philanthropy
In 2007, Bank of America demonstrated its commitment to environmental responsibility and community support. The bank offered employees a $3,000 rebate for hybrid vehicle purchases and a $1,000 rebate or lower interest rates for customers with energy-efficient homes. Partnering with Brighter Planet, they introduced eco-friendly credit and debit cards supporting renewable energy projects. Additionally, Bank of America made donations to health centers in Massachusetts and provided $1 million to homeless shelters in Miami.
2007: Beginning of the Financial Crisis
The financial crisis that led to the securities class action lawsuit against Bank of America began in 2007.
January 11, 2008: Bank of America Announces Acquisition of Countrywide Financial
Bank of America made a significant announcement on January 11, 2008, stating its intention to acquire Countrywide Financial for $4.1 billion.
January 2008: Bank of America Criticized for Doubling Interest Rates
In January 2008, Bank of America faced criticism for increasing interest rates to as high as 28% for some customers who had no history of late payments. The bank did not provide an explanation for these rate hikes, which affected customers with good credit scores.
March 2008: FBI Investigates Countrywide Financial for Potential Fraud
Reports emerged in March 2008 that the Federal Bureau of Investigation (FBI) was investigating Countrywide Financial for potential fraudulent activities related to home loans and mortgages.
May 5, 2008: LaSalle Bank Branches Rebranded as Bank of America
On May 5, 2008, branches of LaSalle Bank and LaSalle Bank Midwest underwent a rebranding, adopting the Bank of America name.
July 2008: Bank of America Completes Acquisition of Countrywide Financial
In July 2008, Bank of America successfully completed the acquisition of Countrywide Financial.
September 14, 2008: Bank of America Announces Acquisition of Merrill Lynch
Bank of America announced its plan to acquire Merrill Lynch & Co., Inc. in a deal valued at approximately $50 billion on September 14, 2008.
December 5, 2008: Shareholders Approve Bank of America and Merrill Lynch Merger
On December 5, 2008, shareholders of both Bank of America and Merrill Lynch & Co., Inc. voted in favor of the proposed acquisition.
December 2008: Bank of America Fails to Disclose Merrill Lynch Bonus Agreement
In December 2008, Bank of America agreed to acquire Merrill Lynch but did not inform its shareholders about a pre-existing agreement to pay up to $5.8 billion in bonuses. This lack of disclosure was later investigated by the SEC and New York Attorney General Andrew Cuomo.
2008: Continuation of the Financial Crisis
The financial crisis that led to the securities class action lawsuit against Bank of America continued into 2008.
2008: Merrill Lynch Acquisition
Bank of America expanded its wealth management services by acquiring Merrill Lynch in 2008.
2008: Discriminatory Lending Practices at Countrywide Financial End
The discriminatory lending practices at Countrywide Financial continued until 2008.
2008: Bank of America Receives $25 Billion in TARP Funds
In the fall of 2008, Bank of America received $25 billion in assistance from the Troubled Asset Relief Program (TARP).
2008: Project Finance Deal of the Year Award
In 2008, Bank of America was awarded Project Finance Deal of the Year at the 2008 ALB Hong Kong Law Awards, recognizing its excellence in project finance.
2008: End of Discriminatory Lending Practices by Countrywide Financial
Countrywide Financial's discriminatory lending practices, which began in 2004, ended in 2008. The company was later acquired by Bank of America.
2008: Acquisition of Merrill Lynch and Countrywide
Bank of America's acquisition of Merrill Lynch and Countrywide in 2008 brought with it a significant portfolio of risky mortgage-backed securities. These securities, issued between 2004 and 2008, contributed to the company's legal and financial challenges in the years that followed.
2008: Lawsuits and Investigations
Bank of America faced numerous lawsuits and investigations, primarily related to its mortgage practices and financial disclosures, stemming from the 2008 financial crisis.
January 1, 2009: Bank of America Completes Acquisition of Merrill Lynch
The acquisition of Merrill Lynch & Co., Inc. by Bank of America was finalized on January 1, 2009.
January 16, 2009: Bank of America Reports Merrill Lynch Losses
Bank of America disclosed substantial losses at Merrill Lynch in the fourth quarter of 2008 during its earnings release on January 16, 2009.
March 15, 2009: Bank of America Receives Additional Bailout Money
On March 15, 2009, Bank of America received an extra $5.2 billion in government bailout funds through the bailout of American International Group, as reported by The New York Times.
July 2009: Parmalat Lawsuit Settlement Announcement
In July 2009, Bank of America and Parmalat announced a settlement agreement regarding the $10 billion lawsuit filed in 2003.
August 3, 2009: Bank of America Fined $33 Million by SEC
On August 3, 2009, Bank of America agreed to pay a $33 million fine to the U.S. Securities and Exchange Commission (SEC) for failing to disclose an agreement to pay up to $5.8 billion in bonuses at Merrill Lynch. This occurred before the merger, and shareholders were unaware when considering the acquisition in December 2008.
September 2009: Customer Complaint Video Goes Viral
In September 2009, a Bank of America customer named Ann Minch posted a YouTube video criticizing the bank for raising her interest rate. The video gained widespread attention, prompting a bank representative to contact her and lower her rate.
October 2009: Parmalat Lawsuit Settlement Payment
As part of the settlement reached in July 2009, Bank of America paid Parmalat $98.5 million in October 2009.
October 2009: WikiLeaks Claims Possession of Bank of America Data
Julian Assange of WikiLeaks revealed in October 2009 that the organization had a 5-gigabyte hard drive previously used by a Bank of America executive. Assange stated that WikiLeaks intended to publish the contents of the hard drive.
December 2, 2009: Bank of America Announces Repayment of TARP Funds
On December 2, 2009, Bank of America declared its intention to repay the full $45 billion it had borrowed from the Troubled Assets Relief Program (TARP), utilizing $26.2 billion in excess liquidity and $18.6 billion from "common equivalent securities." The bank confirmed the completion of the repayment on December 9.
2009: Temasek Holdings Sells Stake in Bank of America
Temasek Holdings, initially the largest shareholder of Merrill Lynch & Co., Inc., divested its entire stake in Bank of America in the first quarter of 2009.
2009: Bank of America Merrill Lynch Established
Bank of America established Bank of America Merrill Lynch in 2009, focusing on investment banking, later renamed BofA Securities.
December 31, 2009: Ken Lewis Retires as CEO of Bank of America
Ken Lewis announced his retirement as CEO of Bank of America, effective December 31, 2009, partly due to controversy surrounding the Merrill Lynch acquisition. This followed his earlier loss of the chairman of the board title.
2009: Merrill Lynch Recovers from Losses and Contributes to Bank of America's Profit
Following the easing of the credit crisis, Merrill Lynch's losses decreased, and the subsidiary made a significant contribution to Bank of America's profits.
January 1, 2010: Brian Moynihan Takes Over as CEO, Bank of America Repays TARP Funds
On January 1, 2010, Brian Moynihan assumed the roles of president and CEO of Bank of America. Following this transition, there was a decline in credit card charge-offs and delinquencies. Notably, Bank of America successfully repaid the $45 billion it had borrowed from the Troubled Assets Relief Program (TARP).
February 1, 2010: Judge Rakoff Rejects Initial Settlement and Orders Trial Preparation
On September 14, 2009, a federal judge, Jed Rakoff, took the unusual step of rejecting the initial settlement between Bank of America and the SEC regarding the non-disclosure of Merrill Lynch bonuses. Judge Rakoff criticized the settlement for placing the financial burden on the shareholders who were supposed to be protected and ordered the parties to prepare for a trial by February 1, 2010.
February 2010: Judge Rakoff Approves Revised Settlement with Reservations
In February 2010, Judge Rakoff reluctantly approved a revised settlement between Bank of America and the SEC, which included a $150 million fine. Although the fine was increased, and its distribution was limited to affected Bank of America shareholders, Judge Rakoff expressed concerns, deeming the settlement "half-baked justice at best."
November 2010: Assange Announces Intent to Expose Major U.S. Bank
In November 2010, Forbes published an interview with Julian Assange, in which he expressed his intention to release information that would significantly impact a major U.S. bank. Bank of America's stock dropped 3.2% following this announcement.
December 2010: Bank of America Halts Transactions with WikiLeaks
In December 2010, Bank of America declared it would stop processing transactions related to WikiLeaks. The bank stated its belief that WikiLeaks might be involved in activities conflicting with its payment processing policies. This decision aligned with similar actions taken by MasterCard, PayPal, and Visa Europe.
2010: Arizona Investigates Bank of America for Misleading Mortgage Practices
The state of Arizona launched an investigation into Bank of America in 2010 for allegedly misleading homeowners seeking mortgage modifications. Arizona's attorney general claimed the bank repeatedly deceived these borrowers. In response, the bank offered modifications under the condition that homeowners remove online criticism about the bank.
2010: Support for Arts and Culture in India
Beginning in 2010, under the leadership of Kaku Nakhate, Bank of America expanded its philanthropic efforts in India to include arts and culture. The company made significant contributions to the preservation and documentation of relics, and notably sponsored the Children's Museum at CSMVS (Chhatrapati Shivaji Maharaj Vastu Sangrahalaya).
2010: Bank of America Accused of Defrauding Government Organizations
In 2010, the U.S. government accused Bank of America of defrauding schools, hospitals, and numerous state and local government entities through illegal practices connected to investments from municipal bond proceeds. The bank agreed to a $137.7 million settlement.
2010: Bank of America Completes Construction of LEED-Certified Tower in Charlotte
In 2010, Bank of America finished constructing the 1 Bank of America Center in downtown Charlotte. The tower, along with its accompanying hotel, is a LEED-certified building, reflecting the bank's commitment to environmental sustainability.
2010: Bank of America Accused of Property Seizure Errors
In 2010, Bank of America faced allegations of wrongfully seizing three properties. The alleged seizures were reportedly due to errors in legal documents, where incorrect addresses were listed.
January 2011: Bank of America Settles Municipal Bond Fraud Allegations
By January 2011, investigations were still ongoing into Bank of America's alleged defrauding of schools, hospitals, and various government organizations through misconduct related to municipal bond sales.
March 14, 2011: Anonymous Email Leak
On March 14, 2011, the hacker group Anonymous began publicly releasing emails allegedly belonging to a former Bank of America employee. Anonymous claimed the emails contained evidence of "corruption and fraud" within the bank. The alleged source of the leak was identified as Brian Penny, a former employee of Balboa Insurance, a company previously owned by Bank of America and later sold to Australian Reinsurance Company QBE.
April 18, 2011: Acquittal in Parmalat-Related Case
An Italian court acquitted Bank of America, three other major banks, and their employees of charges related to assisting Parmalat in concealing fraud on April 18, 2011. The court also cleared them of allegations of inadequate internal controls to prevent such fraudulent activities. However, prosecutors were considering appeals, and charges against the banks for covering up the fraud remained in Parma.
August 2011: WikiLeaks Alleges Deletion of Bank of America Data
Before August 2011, WikiLeaks asserted that 5 GB of leaked Bank of America data was among the 3500 communications deleted by former WikiLeaks volunteer Daniel Domscheit-Berg.
August 2011: Lawsuits over Mortgage Debt and Securities
Bank of America faced two major lawsuits in August 2011. American International Group (AIG) sued the bank for $10 billion, alleging "massive fraud" related to mortgage debt. Separately, another lawsuit concerned $57.5 billion in mortgage-backed securities sold by Bank of America to Fannie Mae and Freddie Mac.
November 2011: Bank of America Announces Divestment Plans
In November 2011, Bank of America announced plans to divest most of its stake in the China Construction Bank, signaling a strategic shift in its investments in China.
December 2011: Bank of America Ranked 91st in Financial Wealth, Continues Job Cuts
In December 2011, despite personnel reductions, Forbes ranked Bank of America 91st among the top 100 U.S. banks and thrift institutions in terms of financial wealth.
December 2011: Bank of America Settles Discrimination Lawsuit
The Justice Department announced a $335 million settlement with Bank of America in December 2011 regarding discriminatory lending practices at Countrywide Financial between 2004 and 2008.
February 9, 2012: National Mortgage Settlement
On February 9, 2012, Bank of America and four other major mortgage servicers reached a landmark agreement with the federal government and 49 states. The National Mortgage Settlement (NMS) mandated the servicers to provide approximately $26 billion in relief to struggling homeowners and indirect payments to states and the federal government. This settlement, the second-largest civil settlement in U.S. history, aimed to address issues stemming from the mortgage crisis. In addition to the financial relief, the five banks were required to adhere to 305 new mortgage servicing standards. Oklahoma opted out of the settlement to pursue a separate agreement with the banks.
April 18, 2012: Miami Tower Recognized for Architectural Significance
On April 18, 2012, the Miami Tower, formerly known as Bank of America Tower, was added to the American Institute of Architects' Florida Chapter's list of Florida Architecture: 100 Years. 100 Places. The tower is recognized for its iconic appearance in the television series Miami Vice.
September 2012: Settlement of Merrill Lynch Acquisition Lawsuit
In September 2012, Bank of America reached a $2.4 billion out-of-court settlement in a class-action lawsuit. The lawsuit was brought by Bank of America shareholders who alleged they were misled during the acquisition of Merrill Lynch.
September 28, 2012: Bank of America Settles Class-Action Lawsuit over Merrill Lynch Acquisition
Bank of America reached a settlement in the class-action lawsuit related to the Merrill Lynch acquisition on September 28, 2012, agreeing to pay $2.43 billion.
October 24, 2012: Bank of America Sued for Alleged Mortgage Fraud
On October 24, 2012, the top federal prosecutor in Manhattan initiated a lawsuit against Bank of America, alleging a fraudulent scheme called "Hustle" (High Speed Swim Lane), where Countrywide Financial, a subsidiary of Bank of America, sold low-quality mortgages to Fannie Mae and Freddie Mac, costing American taxpayers over $1 billion.
2012: Bank of America Ends Lease of Industrial Trust Building
Bank of America ended its lease of the Industrial Trust Building in 2012.
2012: Bank of America Accelerates Job Cuts, Completes Project New BAC a Year Ahead of Schedule
Facing declining revenue due to new regulations and a sluggish economy, Bank of America expedited its job cuts, eliminating approximately 16,000 positions by the close of 2012. This acceleration allowed the bank to complete its cost-cutting initiative, known as Project New BAC, which aimed to reduce 30,000 jobs, a year ahead of its initial target.
2012: Cutting Ties with ALEC
In 2012, Bank of America cut its ties with the American Legislative Exchange Council (ALEC), distancing itself from the controversial organization.
March 2013: Industrial Trust Building Becomes Vacant
The Industrial Trust Building has been vacant since March 2013.
September 2013: Sale of Remaining Stake in China Construction Bank
In September 2013, Bank of America sold its remaining stake in China Construction Bank for up to $1.5 billion, completing its exit from the Chinese market.
March 2014: Settlement of Mortgage Fraud Lawsuit
Bank of America agreed to a $6.3 billion settlement in March 2014 to resolve a lawsuit alleging mortgage fraud. The lawsuit, filed by American federal prosecutors, claimed that Countrywide, which Bank of America had acquired, had engaged in reckless mortgage lending practices, leading to significant losses for taxpayers. As part of the settlement, Bank of America agreed to pay the sum to Fannie Mae and Freddie Mac and to repurchase around $3.2 billion worth of mortgage bonds.
April 7, 2014: Settlement of Class-Action Lawsuit Related to Email Leak
Bank of America and QBE reached a $228 million settlement on April 7, 2014, to resolve a class-action lawsuit. The lawsuit stemmed from the 2011 email leak orchestrated by the hacker group Anonymous, which exposed alleged misconduct within the bank.
April 2014: Settlement with Former CFO Joe L. Price
In April 2014, Bank of America reached a $7.5 million settlement with its former chief financial officer, Joe L. Price. The settlement resolved allegations that the bank's management, including Price, had withheld crucial information related to the 2008 merger with Merrill Lynch.
April 2014: CFPB Orders Relief for Credit Card Practices
The Consumer Financial Protection Bureau (CFPB) directed Bank of America in April 2014 to provide approximately $727 million in relief to consumers affected by the bank's problematic credit card add-on product practices. The CFPB found that Bank of America had engaged in deceptive marketing tactics, misleading roughly 1.4 million customers about the add-on products. Additionally, the bank illegally charged approximately 1.9 million customers for credit monitoring and reporting services they did not receive. The CFPB's action aimed to address these unfair billing practices and provide redress to affected consumers.
May 2014: Bank of America Sells Michigan Branches to Huntington Bancshares
In April and May 2014, as part of a strategic streamlining effort, Bank of America divested itself of two dozen branches located in Michigan by selling them to Huntington Bancshares. These branches were later rebranded and integrated into the Huntington National Bank network by September of the same year.
August 2014: Settlement Over Toxic Mortgage-Linked Securities
In August 2014, Bank of America agreed to a nearly $17 billion settlement with the U.S. Justice Department over claims related to the sale of toxic mortgage-linked securities, marking the largest settlement in U.S. corporate history.
August 2014: Record Settlement over Mortgage-Backed Securities
In August 2014, Bank of America agreed to a historic $16.65 billion settlement with the United States Department of Justice to resolve allegations concerning the sale of risky mortgage-backed securities prior to the 2008 financial crisis. The settlement, the largest ever between a single company and the U.S. government, included $7 billion for consumer relief and $9.65 billion in penalties to federal and state governments.
2014: Bank of America Prioritizes Mobile Banking, Sees Decline in Branch Visits
By 2014, Bank of America had 31 million active online customers and 16 million mobile users. This shift towards digital banking, coupled with a decrease in customers physically visiting branches, led to a reduction in the bank's physical footprint, shrinking to 4,900 branches.
2014: Bank of America Aims for $5 Billion Savings Through Job Cuts
During 2011, Bank of America initiated workforce reductions, aiming to lay off an estimated 36,000 employees. This move was part of a larger plan to achieve annual savings of $5 billion by 2014.
April 2015: Investigation into Cartel Conduct in Foreign Exchange Market
The Competition Commission of South Africa launched an investigation in April 2015 into potential cartel behavior by major banks, including Bank of America, in the country's foreign currency exchange market. The investigation focused on alleged manipulation of the South African rand's exchange rate. The commission was examining whether the banks had colluded to fix prices on bids, offers, and bid-offer spreads for spot, futures, and forward currency trades involving the rand. Such conduct, if proven, could have resulted in distorted exchange rates and artificially inflated trading costs, ultimately harming consumers and businesses.
May 6, 2015: Bank of America Announces Reduced Exposure to Coal Companies
On May 6, 2015, Bank of America announced its plan to decrease its financial involvement with coal companies. This decision came after pressure from universities and environmental organizations. The new policy reflects the bank's commitment to progressively reducing its credit exposure to the coal mining industry.
2015: Organic Expansion into New Cities
In 2015, Bank of America began expanding organically by opening branches in cities like Denver, Minneapolis–Saint Paul, and Indianapolis, where it previously had no retail presence.
May 23, 2016: Appeals Court Rules in Favor of Bank of America in Mortgage Fraud Case
On May 23, 2016, the Second U.S. Circuit Court of Appeals overturned a lower court's ruling and decided in favor of Bank of America in the "Hustle" case. The court determined that while Countrywide Financial, a Bank of America subsidiary, had breached its contract by providing low-quality mortgages, there wasn't enough evidence to prove an intent to defraud Fannie Mae and Freddie Mac when the agreement was established.
2016: Consumer Banking Division Revenue
In 2016, Bank of America's Consumer Banking division, which provides a range of financial services to consumers and small businesses, represented 38% of the company's total revenue.
2016: Global Banking Division Revenue
In 2016, the Global Banking division, which includes investment banking and lending products, contributed 22% of Bank of America's total revenue.
2016: Global Markets Division Revenue
In 2016, the Global Markets division, offering services like trading and risk management to institutional clients, represented 19% of Bank of America's total revenue.
2016: Global Wealth and Investment Management Division Revenue
In 2016, the Global Wealth and Investment Management division, which manages investment assets, accounted for 21% of Bank of America's total revenue.
January 2018: Retail Expansion into Pittsburgh
In January 2018, Bank of America announced an organic expansion of its retail footprint into Pittsburgh, filling a gap in the market where no other Big Four bank had a retail presence.
February 2018: Expansion into Ohio
In February 2018, Bank of America announced its expansion into Ohio's three biggest cities: Cleveland, Columbus, and Cincinnati, with Columbus serving as the hub due to its central location and significance.
April 2018: End of Financing for Military-Style Weapons
In April 2018, Bank of America announced it would stop providing financing to makers of military-style weapons, such as the AR-15 rifle, in response to recent mass shootings.
June 2018: Sales Revenue
By June 2018, Bank of America, the sixth largest American public company, generated $102.98 billion in sales revenue.
August 2018: Market Capitalization and Global Ranking
As of August 2018, Bank of America reached a market capitalization of $313.5 billion, positioning it as the 13th largest company globally.
2018: Former Executive's Arbitration Case and Settlement
Omeed Malik, a former senior executive at Bank of America, filed a $100 million arbitration case against the company in 2018. Malik alleged that the bank had investigated him for sexual misconduct as an act of retaliation, breach of contract, and discrimination based on his Muslim background. The case was filed through the Financial Industry Regulatory Authority (FINRA). Bank of America and Malik reached an eight-figure settlement in July of the same year, resolving the dispute.
2018: Bank of America's Mobile Banking Platform Continues to Grow, Branches Decline
By 2018, Bank of America's mobile banking platform experienced significant growth, reaching 25.3 million users. Consequently, the bank further decreased its physical presence, with the number of branches dropping to 4,411 by the end of June, reflecting the continued shift towards digital banking.
2018: Bank of America's Investment Banking Ranking
By 2018, Bank of America's investment banking arm was recognized as the third largest globally, classified as "Bulge Bracket".
April 9, 2019: Announcement of Minimum Wage Increase
On April 9, 2019, Bank of America announced that it would increase its minimum wage to $17.00 an hour starting May 1, 2019, with a goal to reach $20.00 an hour by 2021.
May 1, 2019: Minimum Wage Increase Implementation
On May 1, 2019, Bank of America implemented a minimum wage increase to $17.00 an hour, as part of its plan to reach $20.00 an hour by 2021.
June 2019: Bank of America Ends Tenancy at TC Energy Center
Bank of America ended its tenancy at TC Energy Center in Houston, Texas in June 2019.
January 2020: Hiring of New Advisors for Ultra-Wealthy Clients
In January 2020, Bank of America hired new advisors whose primary functions are to assist ultra-wealthy clients, enhancing its services for high-net-worth individuals.
2020: Fortune 500 Ranking
Bank of America secured the 25th position in the 2020 Fortune 500 rankings, which lists the largest US corporations based on total revenue.
2020: 16th Largest Bank by Deposits in Pittsburgh
By the end of the fiscal year 2020, Bank of America had become Pittsburgh's 16th largest bank by deposits, a notable achievement given the market dominance of PNC and BNY Mellon.
2021: 9th Largest Bank by Deposits in Ohio
As of 2021, Bank of America became the 9th largest bank by deposits in Ohio, reflecting its growing presence in the state's major markets.
2021: Minimum Wage Goal Achievement
By 2021, Bank of America achieved its goal of raising the minimum wage to $20.00 an hour.
2021: 12th Largest Bank by Deposits in Pittsburgh
By 2021, Bank of America had moved up to become the 12th largest bank by deposits in the Pittsburgh market.
March 2022: Bank of America Issues Apology After Wrongfully Targeting Filmmaker Ryan Coogler
In March 2022, Bank of America was involved in an incident where filmmaker Ryan Coogler was mistakenly identified as a bank robber and detained by police in Atlanta. The incident occurred when Coogler attempted to withdraw cash from a local branch. Although Coogler presented his California ID and bank card for verification, the bank teller did not check his ID before asking the supervisor to call the police. After his identity was confirmed, Coogler was released, and the bank issued an apology.
May 2022: CFPB Penalizes Bank of America for Illegal Garnishments
The CFPB ordered Bank of America to pay $10 million in penalties in May 2022 for illegal garnishments. The bureau found that the bank had improperly froze customer accounts and seized funds without following proper legal procedures.
2023: Forbes Global 2000 Ranking
In 2023, Forbes ranked Bank of America as No. 6 on its Global 2000 list.
2023: Consumer Financial Protection Bureau Fines Bank of America \$250 Million
In 2023, the Consumer Financial Protection Bureau fined Bank of America \$250 million for deceptive practices that negatively impacted hundreds of thousands of consumers. These practices included charging multiple insufficient funds fees, not providing credit card rewards, and opening accounts without customer consent.