Merger of Nations Bank and Bank America

Merger of NationsBank and BankAmerica In 1997, BankAmerica lent D.E. Shaw & Co., a large hedge fund, $1.4bn so that the hedge fund would run various businesses for the bank. However, D.E. Shaw suffered significant loss after 1998 Russia bond default. BankAmerica was later acquired by NationsBank that year.

The purchase of BankAmerica Corp. by the NationsBank Corporation was the largest bank acquisition in history at that time. While the deal was technically a purchase of BankAmerica Corporation by NationsBank, the deal was structured as merger with NationsBank renamed to Bank of America Corporation, and Bank of America NT&SA, changing its name to Bank of America, N.A. as the remaining legal bank entity. The bank still operates under Federal Charter 13044 which was granted to Giannini's Bank of Italy on March 1, 1927. However, SEC filings before 1998 are listed under NationsBank, not BankAmerica.

Following the US$64.8 billion acquisition of BankAmerica by NationsBank, the resulting Bank of America had combined assets of US$570 billion, as well as 4,800 branches in 22 states. Despite the mammoth size of the two companies, federal regulators insisted only upon the divestiture of 13 branches in New Mexico, in towns that would be left with only a single bank following the combination. This is because branch divestitures are only required if the combined company will have a larger than 25 percent FDIC deposit market share in a particular state or 10 percent deposit market share overall.

Source:http://en.wikipedia.org/wiki/Bank_of_America

Bank of ItalyThe Roots Of The Pre1998 Bank of America

Bank of ItalyThe roots of the pre-1998 Bank of America lie in the American Bank of Italy, founded in San Francisco by Amadeo Giannini in 1904. When the 1906 San Francisco earthquake struck, Giannini was able to get all of the deposits out of the bank building and away from the fires. Thus, unlike many other banks, he retained the confidence of the depositors and also had money to lend to those struck by the disaster.

In the late 1920s, Giannini approached Orra E. Monnette, President and founder of Bank of America, Los Angeles, about a merger between the two entities. The Los Angeles based bank had exhibited strong growth throughout the 1920s, due in part to its success in developing an advanced branch banking system. The merger was completed in early 1929 and took the name Bank of America. The combined company was headed by Giannini with Monnette serving as co-Chair.

While the names of many nationally chartered banks end with the initials 'N.A.' (National Association), Giannini picked a unique ending, National Trust and Savings Association, or 'NT&SA', because he wanted the name to highlight the different functions of the bank. Bank of America was the only NT&SA in the country. Thanks to good management, but also to aggressive development of the branch banking concept, the bank was soon the largest in California.

Bank of America Largest Commercial Bank In The United States

Bank of America (NYSE: BAC TYO: 8648) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world.

It is the largest American company (by market capitalization) that is not part of the Dow Jones Industrial Average.

Type - Public (NYSE: BAC TYO: 8648)
Founded - (as "Bank of Italy")
San Francisco, CA (1928)
(acquiring banks)
Charlotte, NC (1874)
Boston, MA (1784)
Headquarters Charlotte, North Carolina, U.S.
Key people Kenneth D. Lewis, Chairman, CEO & President
Amy W. Brinkley, Global Risk Executive
J. Steele Alphin, CAO
Joe L. Price, CFO
Industry - Banking
Products - Financial Services
Revenue - $117.01 billion USD (2006)[2]
Operating income - $21.64 billion USD (2006)[3]
Net income - $21.13 billion USD (2006)[3][2]
Employees - 203,425 (2006)[2]
Slogan - Bank of Opportunity[1]
Website - www.bankofamerica.com