Where has Bank of America gone wrong

Where has Bank of America gone wrong - Running Head WHERE...

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Running Head: WHERE DID BANK OF AMERICA 1 Where has Bank of America gone wrong? Michelle S. Tull Columbia College
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WHERE DID BANK OF AMERICA 2 Bank of America originally started out as Bank of Italy in 1904 by Mr. Amadeo Giannini in a San Francisco neighborhood. The bank served Italian Americans from the North Beach area and in 1906 Mr. Giannini saved all the deposits during the San Francisco earthquake and fire. He was able to resume banking before most banks could. In 1930 Bank of Italy changed its name to Bank of America. The film industry has a long history with Bank of America and during the Great Depression they financed movies like The Kid, Gone with the Wind, Snow White and the Seven Dwarfs, It’s a Wonderful Lie and West Side Story. They also backed most major film companies like MGM and the Warner Brothers to name a few. Walt Disney had a vision and Bank of America helped him achieve this vision, not only with his movies but the building of Disneyland and Disney World (“Our Story: Modern”, n.d.). In 1950, Bank of America was the first bank to use a computer to help with their banking. According to Bank of America’s site (“Our Story: Technology”, n.d.), they teamed up with Stanford Research Institute and created ERMA (Electronic Recording Method of Accounting), which was debuted in 1955 by Ronald Reagan through a video conference. ERMA helped process checks faster, post to accounts, and calculated service charges to name a few, but more importantly it made banking more efficient. During the same time they were working with Stanford, Bank of America launched the magnetic-ink character recognition (MICR) and its job was to read the necessary information from checks and deposit slips, this is why we have the string of numbers on the bottom of our checks(“Our Story: Technology”, n.d.). They provided this to all banks and printers without a royalty charge and was deemed as “the greatest breakthrough in banking” by American Banker in 1984. In 1958, Bank of America launched their own credit card called BankAmericard with no service or monthly dues. This card would let people charge items and carry a revolving balance on the card. By 1966, the bank began licensing the BankAmericard to other banks and became
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WHERE DID BANK OF AMERICA 3 the “first nationally licensed general-use credit card program.” (“Our Story: Modern”, n.d.). This would lead other banks to start issuing credit cards after seeing the success Bank of America had with their card. The BankAmericard would become Visa in 1976. Today the headquarters for Bank of America is in Charlotte, N.C. and the banks are in all 50 countries, District of Columbia, and over 35 countries. They have approximately 16,000 ATM’s, 4,700 retail financial centers, over 20 million mobile users and 47 million customers and small businesses. According to an article in the Salina Journal (2016), they employ 209,009 people at this time, and more than 74,000 less than when CEO Brian Moynihan took over in 2010. This is fewer employees than what they had when they acquired Countrywide Financial in 2008 and Merrill Lynch in 2009. (“Bank of America profits”, 2016) CEO Moynihan is working
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