Page 177 - Bank Case Studies

Bank of America

“As of April 16, 2018, we operated in all 50
states, the District of Columbia, the U.S. Virgin
Islands, Puerto Rico and more than 35
countries. Our retail banking footprint covers
approximately 80 percent of the U.S. population,
and we serve approximately 47 million
consumer and small business relationships with
approximately 4,500 retail financial centers,
approximately 16,000 ATMs, and leading
online and mobile banking platforms with
approximately 36 million active accounts and
more than 25 million mobile active users.”(16)

Bank of America (BofA) took full advantage of the U.S.

housing boom, with its share price doubling between 2001

and 2007 as profits rocketed.

The financial crisis

however, sent the global

banking industry to the

brink of disaster and

BofA suffered more than

most. In 2005 it acquired
credit card giant MBNA

for $35 billion in cash and stock, in an ill-timed acquisition

which cost the bank heavily as it ended up having to write

off between $20 billion and $30 billion in credit card loans

each year from 2008 to 2010. (13)