What Is Bank of America?:
Bank of America is one of the world's largest financial institutions. It reaches 50% of all U.S. households and serves 55 million customers with 6,100 bank locations, 18,500 ATMs and online banking with nearly 30 million users. Bank of America has 4 million small business customers. It operates in more than 150 countries.
In 2008, it had $74 billion in revenue, up from $68.5 billion in 2007. Its net income was only $4 billion, down from $14 billion the year before. However, this was the second largest earning among U.S. banks that year. Its net assets were $1.8 trillion, up from $1.7 trillion in 2007.
Bank of America is well-capitalized from deposits from extensive consumer and small business customer base. It is the U.S. leader in total deposits, which total $883 billion. Nearly 80% of its revenue comes from this base.
Why Is Bank of America Important to the U.S. Economy?:
Bank of America bought two banks in 2008, helping to save those banks and strengthen the U.S. financial system during the banking crisis. Countrywide was one of the nation's largest mortgage lenders. Merrill Lynch was a premier wealth management bank. These acquisitions will help Bank of America be better positioned in these markets when the recession ends. This will make the bank more diversified and competitive. (Source: Bank of America 2008 Annual Report)
