Bank of America
The massive Bank of America traces its roots to the Bank of Italy, known as the "little fellows bank," founded by A. P. Giannini in 1904. Giannini, a produce merchant in San Francisco, inherited a seat on the board of directors of a savings bank in the city's Italian neighborhood from his father-in-law. Believing that the local banks excluded working-class consumers seeking smaller loans, Giannini resigned from the board and opened his own bank. By making loans as small as $25, selling stock to a small group of loyal investors, and going door-to-door to solicit customers, Giannini launched what became the first network of branch banks serving local communities in San Francisco.After the devastating earthquake and fire that struck San Francisco in 1906, Giannini's bank was the first to open for business. Three years later Bank of Italy purchased San Jose Bank, beginning a process of acquisitions and expansion. By 1918 Bank of Italy had 24 branches. In 1921 Giannini purchased the Bank of America of Los Angeles, with its 21 branches. In this way Giannini sidestepped the order of the Federal Reserve Board prohibiting member banks from opening new branches. After the U.S. Congress relaxed the restrictions on branch
During World War II (1939-1945) Bank of America doubled in size and surpassed Chase Manhattan as the world's largest bank. The bank continued to grow after the war, when the expansion of the defense industry stimulated California's economy. In the late 1950s the federal government forced Bank of America to divest its banking operations located outside of California and to separate completely from Transamerica. Bank of America then decentralized operations and expanded internationally. By 1960 the bank's assets had reached nearly $12 billion. The BankAmerica Corporation holding company was formed in 1968. Bank of America was the first bank to electronically manage its records, and by 1961 the bank had computerized all operations. In 1958 the company introduced a bank credit card known as the BankAmericard (BankAmerica sold the bank card system in 1970 and it was later renamed Visa). Bank of America survived the Great Depression of the 1930s, when massive unemployment led to reduced deposits and large numbers of unpaid loans, and by 1936 ranked as the fourth largest financial institution and the second largest savings bank in the United States, with assets exceeding $2.1 billion. In the wake of
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Approximate Word count = 811
Approximate Pages = 3 (250 words per page double spaced)
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