Bank of America Stock
About Bank of America
Bank of America Corporation, a financial institution, provides a range of banking, investing, asset management and other financial and risk management products and services.
The company serves individual consumers, small- and middle-market businesses, institutional investors, large corporations and governments. The company, through its various bank and nonbank subsidiaries throughout the U.S. and in international markets, provides a range of banking and nonbank financial services and products. The company operates its banking activities primarily under the Bank of America, National Association charter.
As of December 31, 2021, the company served clients through operations across the U.S., its territories and approximately 35 countries. Its retail banking footprint covers various major markets in the U.S., and it serves approximately 67 million consumer and small business clients with approximately 4,200 retail financial centers, approximately 16,000 ATMs, and leading digital banking platforms (www.bankofamerica.com) with approximately 41 million active users, including approximately 33 million active mobile users. The company offers support to approximately three million small business households. Its GWIM businesses provide tailored solutions to meet client needs through a set of investment management, brokerage, banking, trust and retirement products. The company focuses on corporate and investment banking and trading across a range of asset classes serving corporations, governments, institutions and individuals worldwide.
The company operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets, with the remaining operations recorded in All Other.
Consumer Banking offers a range of credit, banking and investment products and services to consumers and small businesses. Consumer Banking product offerings include traditional savings accounts, money market savings accounts, CDs and IRAs, checking accounts, and investment accounts and products, as well as credit and debit cards, residential mortgages and home equity loans, and direct and indirect loans to consumers and small businesses in the U.S. Consumer Banking includes the impact of servicing residential mortgages and home equity loans.
Deposits and Consumer Lending include the net impact of migrating customers and their related deposit, brokerage asset and loan balances between Deposits, Consumer Lending and GWIM, as well as other client-managed businesses. The company’s customers and clients have access to a coast-to-coast network, including financial centers in 38 states and the District of Columbia.
As of December 31, 2021, the company’s network included approximately 4,200 financial centers, approximately 16,000 ATMs, nationwide call centers and major digital banking platforms with approximately 41 million active users, including approximately 33 million active mobile users.
Deposits includes the results of consumer deposit activities that consist of a range of products provided to consumers and small businesses. Its deposit products include noninterest- and interest-bearing checking accounts, money market savings accounts, traditional savings accounts, CDs and IRAs, as well as investment accounts and products. Consumer Investments serves investment client relationships through the Merrill Edge integrated investing and banking service platform, providing investment advice and guidance, client brokerage asset services, self-directed online investing and key banking capabilities, including access to the company’s network of financial centers and ATMs.
Consumer Lending offers products to consumers and small businesses across the U.S. The products offered include debit and credit cards, residential mortgages and home equity loans, and direct and indirect loans, such as automotive, recreational vehicle and consumer personal loans. In addition to earning net interest spread revenue on its lending activities, Consumer Lending generates interchange revenue from debit and credit card transactions, late fees, cash advance fees, annual credit card fees, mortgage banking fee income and other miscellaneous fees. Consumer Lending products are available to the company’s customers through its retail network, direct telephone, and online and mobile channels. Consumer Lending results also include the impact of servicing residential mortgages and home equity loans, including loans held on the balance sheet of Consumer Lending and loans serviced for others.
Global Wealth & Investment Management
GWIM provides a client experience through a network of financial advisors focused on clients with approximately $250,000 in total investable assets, including tailored solutions to meet clients’ needs through a set of investment management, brokerage, banking and retirement products. This segment also provides comprehensive wealth management solutions targeted to high net worth and ultra-high net worth clients, as well as customized solutions to meet clients’ wealth structuring, investment management, trust and banking needs, including specialty asset management services. GWIM consists of two primary businesses, including Merrill Wealth Management and Bank of America Private Bank.
Global Banking provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services through the company’s network of offices and client relationship teams. Global Banking also provides investment banking products to clients. The economics of certain investment banking and underwriting activities are shared primarily between Global Banking and Global Markets under an internal revenue-sharing arrangement. Global Banking clients include middle-market companies, commercial real estate firms, not-for-profit companies, large global corporations, financial institutions, leasing clients, and mid-sized U.S.-based businesses requiring customized and integrated financial advice and solutions.
Global Banking, which includes Global Corporate Banking, Global Commercial Banking, Business Banking and Global Investment Banking, provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services through the company’s network of offices and client relationship teams. The company’s lending products and services include commercial loans, leases, commitment facilities, trade finance, commercial real estate lending and asset-based lending. Its treasury solutions business includes treasury management, foreign exchange, short-term investing options and merchant services. The company also provides investment banking products to its clients, such as debt and equity underwriting and distribution, and merger-related and other advisory services. Underwriting debt and equity issuances, fixed-income and equity research, and certain market-based activities are executed through its global broker-dealer affiliates, which are its primary dealers in various countries. Within Global Banking, Global Corporate Banking clients include large global corporations, financial institutions and leasing clients. Global Commercial Banking clients include middle-market companies, commercial real estate firms and not-for-profit companies. Business Banking clients include mid-sized U.S.-based businesses requiring customized and integrated financial advice and solutions.
Global Corporate, Global Commercial and Business Banking
Global Corporate, Global Commercial and Business Banking each include Business Lending and Global Transaction Services activities. Business Lending includes various lending-related products and services, and related hedging activities, including commercial loans, leases, commitment facilities, trade finance, real estate lending and asset-based lending. Global Transaction Services includes deposits, treasury management, credit card, foreign exchange and short-term investment products.
Global Investment Banking
Client teams and product specialists underwrite and distribute debt, equity and loan products; and provide advisory services and tailored risk management solutions. The economics of certain investment banking and underwriting activities are shared primarily between Global Banking and Global Markets under an internal revenue-sharing arrangement. Global Banking originates certain deal-related transactions with the company’s corporate and commercial clients that are executed and distributed by Global Markets.
Global Markets offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity and equity businesses. Global Markets provides market-making, financing, securities clearing, settlement and custody services globally to institutional investor clients in support of their investing and trading activities. Global Markets product coverage includes securities and derivative products in both the primary and secondary markets. Global Markets also works with commercial and corporate clients to provide risk management products. As a result of market-making activities, Global Markets might be required to manage risk in a range of financial products. In addition, the economics of certain investment banking and underwriting activities are shared primarily between Global Markets and Global Banking under an internal revenue-sharing arrangement.
All Other primarily consists of asset and liability management (ALM) activities, liquidating businesses and certain expenses not otherwise allocated to a business segment. ALM activities encompass interest rate and foreign currency risk management activities for which substantially all of the results are allocated to the business segments.
As of December 31, 2021, the company’s investment portfolio included mortgage-backed securities, such as agency, agency-collateralized mortgage obligations, commercial, and non-agency residential; U.S. treasury and agency securities; non-U.S. securities; other taxable securities; and tax-exempt securities.
Government Supervision and Regulation
The company is subject to regulatory framework applicable to bank holding companies (BHCs), financial holding companies and banks and other financial services entities. The U.S. federal regulation of banks, BHCs and financial holding companies is intended primarily for the protection of depositors and the Deposit Insurance Fund rather than for the protection of shareholders and creditors.
As a registered financial holding company and BHC, the company is subject to the supervision of, and regular inspection by, the Board of Governors of the Federal Reserve System (Federal Reserve). Its U.S. bank subsidiaries (the banks), organized as national banking associations, are subject to regulation, supervision and examination by the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve. In addition, the Federal Reserve and the OCC have adopted guidelines that establish minimum standards for the design, implementation and board oversight of BHCs’ and national banks’ risk governance frameworks. The U.S. financial holding companies, and the companies under their control, are permitted to engage in activities considered financial in nature as defined by the Gramm-Leach-Bliley Act and related Federal Reserve interpretations. The company’s status as a financial holding company is conditioned upon maintaining certain eligibility requirements for both it and its U.S. depository institution subsidiaries, including minimum capital ratios, supervisory ratings and, in the case of the depository institutions, at least satisfactory Community Reinvestment Act ratings.
The company’s broker-dealer subsidiaries are subject to both the U.S. and international regulation, including supervision by the Securities and Exchange Commission, Financial Industry Regulatory Authority and New York Stock Exchange, among others; its futures commission merchant subsidiaries supporting commodities and derivatives businesses in the U.S. are subject to regulation by and supervision of the U.S. Commodity Futures Trading Commission, National Futures Association, the Chicago Mercantile Exchange and in the case of the banks, certain banking regulators; its insurance activities are subject to licensing and regulation by state insurance regulatory agencies; and its consumer financial products and services are regulated by the Consumer Financial Protection Bureau (CFPB).
The company’s non-U.S. businesses are also subject to extensive regulation by various non-U.S. regulators, including governments, securities exchanges, prudential regulators, central banks and other regulatory bodies, in the jurisdictions in which those businesses operate. The company’s financial services entities in the United Kingdom (U.K.), Ireland and France are subject to regulation by the Prudential Regulatory Authority and Financial Conduct Authority, the European Central Bank and Central Bank of Ireland, and the Autorite de ContrÔle Prudentiel et de Resolution and Autorite des Marches Financiers, respectively.
Pursuant to Section 23A and 23B of the Federal Reserve Act, as implemented by the Federal Reserve’s Regulation W, the banks are subject to restrictions that limit certain types of transactions between the banks and their nonbank affiliates. In general, the U.S. banks are subject to quantitative and qualitative limits on extensions of credit, purchases of assets and certain other transactions involving their nonbank affiliates. Additionally, transactions between the U.S. banks and their nonbank affiliates are required to be on arm’s length terms and must be consistent with standards of safety and soundness.
As a financial holding company, the company and its bank subsidiaries are subject to the regulatory capital and liquidity rules issued by the Federal Reserve and other U.S. banking regulators, including the OCC and the FDIC.
The company’s consumer businesses are subject to extensive regulation and oversight by federal and state regulators. Certain federal consumer finance laws to which it is subject, including the Equal Credit Opportunity Act, Home Mortgage Disclosure Act, Electronic Fund Transfer Act, Fair Credit Reporting Act, Real Estate Settlement Procedures Act, Truth in Lending Act and Truth in Savings Act, are enforced by the CFPB. Other federal consumer finance laws, such as the Servicemembers Civil Relief Act, are enforced by the OCC.
The company’s derivatives operations are subject to extensive regulation globally. These operations are subject to regulation under the Financial Reform Act, the European Union (EU) Markets in Financial Instruments Directive and Regulation, the European Market Infrastructure Regulation, analogous U.K. regulatory regimes and similar regulatory regimes in other jurisdictions that regulate or will regulate the derivatives markets in which it operates by, among other things requiring clearing and exchange trading of certain derivatives; imposing new capital, margin, reporting, registration and business conduct requirements for certain market participants; imposing position limits on certain over-the-counter derivatives; and imposing derivatives trading transparency requirements. Regulations of derivatives are already in effect in many markets in which the company operates.
The company is subject to many U.S. federal, state and international laws and regulations governing requirements for maintaining policies and procedures regarding the disclosure, use and protection of the non-public confidential information of its customers and employees. The Gramm-Leach-Bliley Act requires the company to periodically disclose the company’s privacy policies and practices relating to sharing such information and enables retail customers to opt out of its ability to share information with unaffiliated third parties, under certain circumstances. The Gramm-Leach-Bliley Act and other laws also require the company to implement a comprehensive information security program that includes administrative, technical and physical safeguards to provide the security and confidentiality of customer records and information.
Other laws and regulations, at the international, federal and state level, impact the company’s ability to share certain information with affiliates and non-affiliates for marketing and/or non-marketing purposes, or contact customers with marketing offers and establish certain rights of consumers in connection with their personal information. California’s Consumer Privacy Act (CCPA), which went into effect in January 2020, as modified by the California Privacy Rights Act (CPRA), provides consumers with the right to know what personal data is being collected, know whether their personal data is sold or disclosed and to whom and opt out of the sale of their personal data, among other rights. In addition, in the EU, the General Data Protection Regulation (GDPR) replaced the Data Protection Directive and related implementing national laws in its member states. The CCPA's, CPRA's and GDPR’s impact on the company was assessed and addressed through comprehensive compliance implementation programs. These existing and evolving legal requirements in the U.S. and abroad, as well as court proceedings and changing guidance from regulatory bodies with respect to the validity of cross-border data transfer mechanisms from the EU, continue to lend uncertainty to privacy compliance globally.
Bank of America Corporation was founded in 1784.