Jim Cramer on CNBC called Bank of America a growth stock and that is the Amazon of Banks and it makes money.
Bank of America is the third largest bank in the the US with $2.3 Trillions as Assets under management (AUM). It was founded in 1904 as Bank of Italy. It was later renamed Bank of America and Italy.
In 1998, following the Russian Financial Crisis, Bank of America and Italy was acquired for a record $68 Billions by NorthernBank of Charlotte. The newly formed bank was renamed Bank of America and is now headquartered in Charlotte, North Carolina.
During the 2008 financial crisis, Bank of America bought Merrill Lynch instead of Lehman Brothers. The CEO of Bank of America (B of A) is Brian T. Moynihan since 2010. In 2011, Warren Buffett bought prefered shares of Bank of America for $5 Billions and later converted those prefered shares into common shares. He made $12 Billions on that transaction. Today, Berkshire Hathaway is the largest shareholder of Bank of America.
Business segments of Bank of America: 1. Consumer Banking 2. Global Wealth and Investment Management 3. Global Banking 4. Global Markets 5. Others
Recently, bank of America became the leader in fintech by launching Erica, a digital financial assistant.