Comparison Of Bank Of America And Southern Bank

Competition is quickly encroaching on SunTrust’s territory. The financial crisis helped rivals gain more presence in SunTrust’s core markets through key acquisitions. BB&T bank, one of SunTrust’s main competitors, recently increased its presence with its acquisition of Florida-based BankAtlantic. This acquisition increased BB&T’s deposit market share to 6th in the Miami market. (BB&T Corporate Profile)

Compare and contrast today’s structure versus historical structures. Why has consolidation occurred and who will experience benefits and losses – customers, the institutions, etc. Why have bank failures occurred? Are there any consequences of consolidation and failure in the industry?

The purpose of this research is to review the impact of mergers and acquisitions on credit unions as it applies to the principles of money and banking. Specifically we will review the impact of the merger between E & A Credit Union and First Community Federal Credit Union. Mergers and acquisitions are very common in today’s financial environment. According to the Glenn Christensen (2015), there has been an increase in approved mergers again this year, June 2015 over June 2014. Not only are there more and more mergers, the size of the merger is growing as well (Christensen, 2015). As we look at the history of financial institutions over the years, mergers and acquisitions are very common. Mergers and acquisitions have had a significant impact in the decline of the number of banks since 1985 (Mishkin, 2016). Over the past few decades, thousands of banks merged (Wilcox & Dopico, 2011). Credit unions have seen significant numbers in terms of mergers and acquisitions spanning over many years. In 1969 there were 23,866 credit unions with assets totaling $16 billion (Wilcox & Dopico, 2011). This number dropped dramatically by 2010 to only 7,491 credit unions (Wilcox & Dopico, 2011). The assets grew to $927 billion equaling 7.6% of bank assets in comparison to the only 3% held during 1969 (Wilcox & Dopico, 2011). Although there was a 70% reduction in the number of credit unions, credit unions grew in their share of the market..

Bank of America is a bank and financial holding company. It is a financial institution that serves individuals small and large business, large corporations and the government. The bank offers banking, investing, asset management, risk management, and other financial services. Through its subsidiaries and other nonbanking subsidiaries in the United States and international markets it provides six major segments. They are Deposits, Global Card Services, Home Loans and Insurance, Global Banking, and Global Wealth & Investments Management. The company is headquartered in Charlotte North Carolina and employees more than 283M people.

Bank of America, on the other hand, has spent its time during the post great recession managing its Merrill Lynch purchase. With such a large wealth management force often referred to as the ‘thundering herd’, the Merrill acquisition allows the bank to explore untapped opportunities, as well as making the bank the biggest in the nation bypassing “JPMorgan Chase & Co (JPM.N) and Citigroup Inc (C.N) in size, giving it about $2.7 trillion of assets” (Stempel, 2009). Similar to Morgan Stanley’s plans for its wealth management arm, Bank of America intends on trading the high volatility of traditional investment banking with the stability of the more retail investor focused wealth management. The strategy and benefits are evident, as various Wall Street firms try and reign in more riskier lines of business with more stable ways of income. Additionally, as explained by Halah Touryalai (2012), the advantage of cross selling traditional banking and mortgage products with wealth management clients “can be a very profitable.” The synergies created between both firms could lead to favorable results “as both sides look to tap into one another’s existing client base… sell more products to existing customers. The more products each one of your customers buys from the bank, the more profitable they become for the bank–not to mention it makes it more difficult for a customer to leave” (para. 5). To emphasize, just the size and scope of Bank of America could lead to more attractive

Bank of America purchased Security Pacific Corporation, and with that purchase Bank of America became the first bank to offer coast to coast operations. In the early 21st century bank of America was operating more than 5000 bank branches in the U.S. and conducting investment banking in multiple countries around the world. In 2004, Bank of America expanded its credit card business when they obtained National Processing, which is a transaction processing firm. To receive a high position in the wealth management business, Bank of America gained U.S Trust Corporation, a firm that manages investments in for high net worth clients.

Bank of America is an amazing bank. In 2002, my family decided to move to Virginia Beach. Since I was 10yrs old, I have banked with Bank of America ever since. The personnel at Bank of America are amazing! Every time I walk in, they greet me by my name and knows my family. In particularly, Bank of America helps me watch my credit cards and bank accounts. A couple of weeks ago, someone tried to use one of my credit cards. I had not realized anything until I received a new card with a different account number. So, I decided to call the company and they explained everything. Overall, I felt safe and secured that my credit card has protection, including my personal information and my accounts. In conclusion, its amazing how Bank of America has

Bank of America was founded in 1904 by Amadeo Peter Giannini when he opened the bank of Italy in San Francisco, it later developed to what we now know as Bank of America. In1958 Bank of America issued its first bank credit card(Bank AmeriCard). Bank America's most substantial purchases was in 1983 the purchase of Washington State Bank. Bank of America became the first bank to offer Coast to Coast operations in the United States and expanded to New England with the acquisition of Fleet Boston Financial Corporation in 2004, by the early twenty-first Century BOA was operating more than 5,500 Bank branches 20 US states in which they conduct corporate and Investment Banking in numerous countries worldwide. Its merger with MBNA Corporation in 2006

We see the banking industry as a good opportunity for investors because there will be a combination of changes that will affect the banking industry, including rising interest rates, a less zealous regulatory environment, tax cuts. Yet, the news is only one of the determinant factors, investigation of the entire industry is necessary before buying stocks. First, the threat of new entrants in the banking industry is medium because opening up a small bank working on the local level is feasible, but what makes it hard to survive is to earn consumers’ trusts. With less new entrants, the existing firms have more potential of earning profits. Since capital is the essential asset on any banks, the power of suppliers is moderate to high.

Bank of America competitive advantage is the share of domestic deposits. They are a firm that has unique set of products and services that may dominate its markets. This type of competitive advantage position can be established even in markets where there is significant technology markets. In my opinion I think Bank of America can survive in both slow and fast cycle markets. Bank of America in slow cycle markets utilizes strategic developments to service the restricted markets to enter into new markets. An example of this is when Bank of America opened their door to social network. Developing a site applicable for small business proprietors to become an affiliate of small business online community, wherein any business can share their remarkable stories to become more interactive. With this strategy development Bank of America analyzed and concluded that the web site will give the firm the opportunity to reach a wider audience. The internet is one of the most powerful tools to make people aware. Bank of America is cooperating with the latest trends to keep providing the best services that will be long term. This influence the long term success of Bank of America in a slow cycle market which maintains stability. (Bank of America,

These bank mergers can generate a great number of advantages. First, the economy of scale is one advantage of the merger. The advantage of the economy of scale is the cost savings associated

Bank of America Corporation (BOFA), comprised of Bank of America and Merrill Lynch, is a multinational company that provides financial services to “people, companies, and institutional investors.” (Bank of America's Strategy of Responsible Growth, 2017) In the U.S. BOFA serves all three customer groups, and outside the U.S. BOFA “serves larger companies and institutional investors. This business model simplifies our operations and reduces our risk profile.” (Bank of America's Strategy of Responsible Growth, 2017) Within the three pillar strategy points, BOFA seeks to aid people, companies, and institutions with their financial needs to obtain the largest customer exposure. Personal banking and wealth-management services assist the individual

Banks that can offer a multitude of consumer products and acquire customers through branches will continue to own customer acquisition and product distribution advantage over the coming years

I did my paper on the article “Ex-auditor Sues Bank of Internet” by Peter Eavis and he wrote the article for the New York Times. Peter Eavis has written a couple of articles for the New York Times about Bank of Internet USA. Bank of Internet USA is just like the name says, is a bank that provides its services over the internet so it is always open because it is online. It was created in 1999 and now has over $6 billion in assets. Most of their business comes from loans on expensive mortgages.

In 1904, the bank had officially opened for business. The company was founded by Amadeo Peter Giannini. By the age of 21, he earned half ownership of the business. Then in 1958, BankAmericard was introduced and licensed to other banks across the country. In 1998, Bank of America began creating the first coast-to-coast banking franchise. As the years went by, Bank of America made great progress. Between 2004-2006, the company bought FleetBosten Financial and MBNA. As of today, the company provides