The origins of Bank of America trace back to 1784, with the founding of Massachusetts Bank, the first federally chartered joint-stock-owned bank in the United States. Another branch of its history stems from the American-based Bank of Italy, founded by Amadeo Pietro Giannini in San Francisco in 1904, which provided banking services to Italian immigrants. Giannini acquired Banca d'America e d'Italia in 1922 and operated as Bank of America. In 1928, Giannini merged his bank with the Bank of America, Los Angeles, headed by Orra E. Monnette.
Following the 1928 merger, the bank rapidly expanded, establishing 453 banking offices in California with over $1.4 billion in resources by 1929. In 1953, regulators forced the separation of Bank of America and Transamerica Corporation under the Clayton Antitrust Act. The passage of landmark federal banking legislation in the 1950s facilitated rapid growth for the bank’s predecessors.
In 1983, Bank of America expanded outside California through the acquisition of Seafirst Corporation in Seattle, which had been at risk of seizure by the federal government. The bank experienced losses in 1986 and 1987 due to bad loans, leading to a change in CEO from Sam Armacost to A. W. (Tom) Clausen. In 1992, Bank of America acquired Security Pacific Corporation, representing the largest bank acquisition in history at the time. In 1998, NationsBank acquired BankAmerica in what was then the largest bank acquisition in history, with the merged bank taking the Bank of America name.
In February 2007, Bank of America began raising interest rates on some customers without payment problems, sparking criticism. In 2008, the bank acquired Countrywide Financial for $4.1 billion, a move that made Bank of America the leading mortgage originator and servicer in the U.S. Later that year, Bank of America announced its intention to purchase Merrill Lynch for approximately $50 billion, effectively saving Merrill from bankruptcy. The U.S. government pressured Bank of America to complete the merger. In 2014, Bank of America agreed to a near-$17 billion settlement relating to the sale of toxic mortgage-linked securities.
Ken Lewis, CEO of Bank of America, announced his retirement effective December 31, 2009, following controversy and legal investigations concerning the purchase of Merrill Lynch. Brian Moynihan became president and CEO effective January 1, 2010.
As of 2016, Bank of America’s Consumer Banking division, providing services to consumers and small businesses, represented 38% of the company’s total revenue. The Global Banking division, offering services to businesses, accounted for 22%. The Global Wealth and Investment Management division, managing investment assets, represented 21% of revenue. Bank of America generates 90% of its revenues in its domestic market.