The Collapse of Bank of America: Causes, Effects, and Analysis

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The Collapse of Bank of America: The largest banking institution in the United States, Bank of America, has been characterized with numerous controversies in the recent past. While the institution only got bigger since the financial crisis and government intervention through bailouts, Bank of America headed towards collapse. In 2011, Bank of America experienced several protests of its branches by various groups like National People's Action, US Uncut and other progressive activists (Jaffe par, 1). These protests were fueled by the groups' anger at Bank of America's tax dodging, huge bonuses that were paid after government bailouts, foreclosures, and other harmful practices. These protests contributed to increased concerns on whether the too-big-to-fail behemoth would really collapse. Bank of America's History: The origin of Bank of America can be traced back to 1904 when it was founded by Amadeo Giannini in San Francisco as the Bank of Italy ("A.P. Giannini" par, 3). During its initial years, the financial institution served the needs of several immigrants settling in America in that period. Bank of Italy was beneficial to these immigrants because it provided services they were denied by the existing American banks that were extremely aristocratic and only served the wealthiest. As a son of immigrants, Giannini loaned to immigrants through the financial institution while other banking firms refused to do so. Consequently, he developed a huge Western banking empire
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