Page 8 - Bank of America E Case Study

However, as BofA sought to be the largest bank in the
U.S.

“it faced difficulty in keeping up with North Carolina-

based NationsBank. In 1998, NationsBank bought Bank of

America, but after the merger, the bank kept the B of A

name, and the share-price history above reflects the

historical legacy of NationsBank as the legal entity that

survived the merger. After the merger, the stock took a

pause and gave up ground as investors looked toward

the tech industry for outpaced gains, and the initial bear-

market move in 2000 took B of A to its lows.” (13)

However, BofA soon recovered and took full advantage of

the emerging housing boom experiencing a doubling of

its share price between 2001 and 2007, a remarkable

performance given the company’s historic, high dividend

yield.

Yet its greatest trial was to prove to be the financial crisis
in 2008 which marked the most critical time for BofA, and

its entire stock history. (13)

Today, BofA is one of the Big Four banks in the U.S. along
with Citigroup, JP Morgan Chase and Wells Fargo, and

holds almost 11% of all bank deposits.

It operates in all 50 states of the United States, and more

than 40 other countries. It has a retail banking footprint

that covers approximately 46 million consumer and small

business relationships at 4,600 banking centers and