After the devastating earthquake in April 1906, looters roamed the streets of San Francisco. Rescuing gold and silver from his small Bank of Italy, A.P. Giannini gained fame by setting up a makeshift bank on a North Beach wharf and making loans to local residents "on a handshake."
A.P. Giannini in 1904. Called "the handsomest man in North Beach," the 22-year old produce merchant married the daughter of the Beach's richest man. When Giannini's father-in-law died in 1902, his widow and 11 children did not divvy up his $1 million estate. Instead, they enlisted the talented Giannini to manage the property. It included a large block of stock in North Beach's first Italian bank. (Bank of America Historical Collection)
Amadeo Peter Giannini was born in San Jose, California in 1870. The son of Italian immigrants had an outsized personality and unlimited faith in the American dream.
Giannini began by selling fruits and vegetables from a horse-drawn wagon. But he was made for bigger things. At age 34, he launched a small bank in the Italian neighborhood of North Beach, San Francisco. At the time, big banks lent only to large businesses, handled deposits of the wealthy, and frowned on aggressive advertising.
The novice financier knocked on doors and buttonholed people on the street. He persuaded "unbanked" immigrants that gold and silver coins were safer in vaults than under mattresses. Moreover, the money would earn interest at his "Bank of Italy."
On the morning of April 18, 1906, a massive earthquake hit San Francisco. The ensuing fires burned down the large banks. Their superheated metal vaults could not be opened for weeks—lest the cash and paper records catch fire when oxygen rushed in.
As flames threatened his one-room bank, Giannini spirited $80,000 in coins out of town. He hid the precious metal under crates of oranges and steered his wagons past gangs of thugs and looters in the streets.
As other banks struggled to recover, Giannini made headlines by setting up a makeshift bank on a North Beach wharf. He extended loans to beleaguered residents "on a handshake" and helped revive the city.
After the devastating earthquake in April 1906, looters roamed the streets of San Francisco. Rescuing gold and silver from his small Bank of Italy, A.P. Giannini gained fame by setting up a makeshift bank on a North Beach wharf and making loans to local residents "on a handshake." (California History Room, California State Library, Sacramento, California)
The innovative bank welcomed small borrowers who might otherwise have to use high-cost loan sharks. Most banks at the time regarded people with modest incomes as credit risks not worth the paperwork. But experience had taught Giannini otherwise: that working class people were no less likely to pay their debts than the wealthy.
Seeking more customers, the former produce salesman returned to his old haunts—the fertile valleys of California. He "walked in rows beside farmers engaged in plowing" to explain how bank branches make credit cheaper and more reliable. Town by town, he built the first statewide branching system in the nation.
On November 1, 1930, the Bank of Italy in San Francisco changed its name to Bank of America. The bank today has the same national bank charter number as Giannini's old bank— #13044.
When A.P. Giannini died in 1949, the former single-teller office in North Beach claimed more than 500 branches and $6 billion in assets. It was then the largest bank in the world.
FAQs
These days, BofA finds itself the problem child of big banks, perhaps more so than even Citigroup (C), with its sprawling, disjointed businesses constantly in need of fixes, or Wells Fargo (WFC), still under a consent decree. BofA trades at just 8.2 times earnings, a 15% discount to JPMorgan's 9.6 times.
What was the beginning of Bank of America? ›
1904: A.P. Giannini founded Bank of Italy, later renamed Bank of America, to support clients and small business owners overlooked by other banks at the time. 1919: Charles Merrill hired Anne Grimes, the first woman to become a bonds salesperson in the U.S.
What was the first big Bank in the United States? ›
Congress charters the Bank of North America—the first financial institution chartered by the United States and the first real bank in the young republic. A de facto central bank whose shares were held by the public, the Bank of North America raised money to support the ongoing war against Britain.
What is special about Bank of America? ›
Bank of America is one of the world's leading financial institutions, serving individuals, small- and middle-market businesses, large corporations, and governments with a full range of banking, investment management and other financial and risk management products and services.
Why does Bank of America have a bad reputation? ›
In those cases, Bank of America illegally used or obtained consumers' credit reports, without their permission, to complete applications. Because of Bank of America's actions, consumers were charged unjustified fees, suffered negative effects to their credit profiles, and had to spend time correcting errors.
Is Bank of America in danger of failure? ›
Based on the analysis of Bank of America's financial health, risk profile, and regulatory compliance, we can conclude that the bank is relatively safe from any trouble or collapse. The bank's financial performance has been stable, and its balance sheet shows a healthy level of capital and a diversified loan portfolio.
What family owns Bank of America? ›
Berkshire Hathaway (BRK. A -0.23%)(BRK. B -0.28%): Warren Buffett's Berkshire Hathaway is the largest Bank of America shareholder, with 1.03 billion shares amounting to a 13% stake. As of March 2024, it was the second-largest of Warren Buffett's stock holdings after Apple (AAPL 2.48%), worth almost $37 billion.
How financially secure is Bank of America? ›
Is Bank of America FDIC insured? Yes, all Bank of America bank accounts are FDIC insured (FDIC #3510) up to $250,000 per depositor, for each account ownership category, in the event of a bank failure.
Who did Bank of America merge with? ›
The bank was founded by the merger of NationsBank and Bank of America in 1998. It is the second-largest banking institution in the United States and the second-largest bank in the world by market capitalization, both after JPMorgan Chase.
When was the largest bank failure in the United States? ›
The largest bank failure ever occurred when Washington Mutual Bank went under in 2008. At the time, it had about $307 billion in assets. During the uncertainty of the banking crisis, however, Washington Mutual experienced a bank run where customers withdrew almost $17 billion in assets in less than 10 days.
The oldest bank still in existence is Banca Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472.
Who took over First of America bank? ›
The final years: a banking conglomerate
1997: National City merges with First of America creating the 13th–largest banking organization in the U.S. at that time in terms of total assets.
What was Bank of America originally called? ›
On November 1, 1930, the Bank of Italy in San Francisco changed its name to Bank of America. The bank today has the same national bank charter number as Giannini's old bank— #13044. When A.P. Giannini died in 1949, the former single-teller office in North Beach claimed more than 500 branches and $6 billion in assets.
Why do people prefer Bank of America? ›
Pros. Bank of America has approximately 4,300 branch locations and 17,000 ATMs, so you'll always have access to your money. The minimums to open a checking account are relatively low, so it's fairly easy to switch banks. If you can qualify for their Preferred Rewards program, it's worth it.
What is Bank of America's culture? ›
Company culture
We've built a strong culture of inclusion by fostering an environment of trust and engagement, where all employees are empowered to bring their whole selves to work.
What is the Bank of America scandal? ›
The CFPB has taken numerous actions against Bank of America for violating federal law. In July 2023, the CFPB and the Office of the Comptroller of the Currency (OCC) ordered Bank of America to pay over $200 million for illegally charging junk fees, withholding credit card rewards, and opening fake accounts.
Is there a problem with Bank of America? ›
No, we are not detecting any problems with Bank of America right now. The last outage detected for Bank of America was on Friday, April 12, 2024 with a duration of about 31 minutes.
Is Bank of America safe to keep money? ›
Is Bank of America FDIC insured? Yes, all Bank of America bank accounts are FDIC insured (FDIC #3510) up to $250,000 per depositor, for each account ownership category, in the event of a bank failure.
What is the Bank of America scandal 2024? ›
Data breach affects 57,000 Bank of America accounts
A data breach at Infosys McCamish, a financial software provider, compromised the names, addresses, dates of birth, Social Security numbers and other account information of 57,028 deferred compensation customers whose accounts were serviced by Bank of America.
