Bank Of Americ A Big Name For A Finance Company

1140 Words Nov 11th, 2015 5 Pages
MGMT 117 Paper 2

Bank of America has always been a big name for a finance company in the United States. My mother has actually worked for the company for over 23 years, and has always informed me that they are a terrible organization. Therefore, I should not have been surprised when they appeared in the book, as one of many famous companies that have received subsidies on the basis of creating new jobs, only to layoff its employees shortly thereafter. Bank of America has actually done this twice in the past 20 years: once in 1993 and again in 2004. Specifically, in 1993 the Bank received $18 million in subsidies to move their employees into the world trade center, in return, they were supposed to retain 1700 jobs, but five years later they merged with Security Pacific National Bank and laid off 800 employees. A year later New York subsequently scraped the subsidy, but didn’t demand any reparations from Bank of America. The Bank nearly did the same exact thing another seven years later. After the 2001 9/11 bombings, Bank of America received another job retaining subsidies packages. The deal included up to $82.6 million in subsidies, and in return the Bank was supposed to create new jobs, in addition to keeping 2,225 of the previous jobs. At this time, Bank of America did not wait five years; later that year they merged with Fleet Bank and with this new amalgamation, there would be 17,000 layoffs all across the country. That is, the first step in solving any problem is…

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