Bank of America Corporation (BAC) is one of the leading financial institutions in the United States. The Bank of America Corporation is a US financial institution and commercial lending organization headquartered in Charlotte, North Carolina. It is also one of the biggest mortgage lenders in the United States. It is considered a high-quality bank because of its diversification into different businesses that range from commercial lending to investment banking.
The Bank of America Corporation trades and holds the shares of many businesses including mortgage-backed securities, commercial real estate loans, asset-based securities, interest rate swap agreements, cash flow notes, credit insurance, mortgage refinancing, and warehousing lease.
With its various operations, the corporation has achieved significant market and financial diversity that allowed it to diversify into not only traditional banking and lending activities but also stock trading, alternative investments, specialty finance, and a host of other business sectors.
BAC is well aware of the risks associated with its activities and thus does its best to mitigate such risks through the use of effective internal controls and business processes. Apart from this, the bank provides quality customer service and maintains a long-standing reputation of being an efficient provider of banking products and services. A prominent US stock brokerages firm, Scottrade, is a registered investor in Bank of America Corporation.
The Bank of America Corporation has a strong management team that includes the likes of Robert K. Davis, Jr. and Allen E. McKee. Mr. Davis is its president and Mr. McKee as its chief financial officer. These two men play a pivotal role in the running of the organization and have made it one of the most efficient corporations in terms of its service to the stock market. The Bank of America Corporation trades under its name, BAC stocks.
The Bank of America Corporation acquires and sells shares from corporations and individuals as part of its core stock trading activities. It also participates in various stock trading exchanges. As part of its strategy of fostering trading opportunities for its clients, the Bank of America Corporation offers a variety of investment securities, like commercial paper, preferred stock, bridge or swing loans, gilt and bond indexes, and certificates of deposit (CD).
Apart from the stock market and financial sector, Bank of America Corporation also enters into partnerships, mergers, and acquisitions, and sells and issues of equity securities and preferred stock. All these endeavors help in increasing the profitability of the corporation. However, these endeavors, if not properly managed, can also damage the image of the Bank of America Corporation.
The Bank of America Corporation takes special steps to ensure that its directors and officers are not personally involved in the process of any transaction that will affect the ownership structure of the company. This policy helps in minimizing the possibility of conflicts of interest and preferential treatment between various beneficiaries.
As it is the major commercial bank in the United States, Bank of America can affect the cost of housing and interest rates. Interest rates are largely controlled by the Bank of America through its intervention in the foreign exchange market. The bank sells dollars and buys dollars, which it then monetizes to raise interest rates.
The bank sells these dollars, which it purchases from other institutions and companies, at a lower price. In turn, it pays the brokerages, banks, and other third parties for the privilege of advancing this loan to the borrowers.