...Table of Contents Case Summary 2 Affected Stakeholders 3 Ethical Dilemma 4 Why would a $500,000 salary cap prompt personnel to leave for other banks? 5 Was stripping of Lewis’ chairmanship a significant move on the part of BoA shareholders? 6 How could Thain justify spending $1.2 million on his office when Merrill Lynch was on the verge of bankruptcy? 7 What did Ken Lewis hope to gain by claiming that he was “pressured” into completing the Merrill Lynch deal? 9 Of all decisions made by Ken Lewis in this case study, which one do you think did the most damage to his reputation? And why? 10 What should Lewis have done? 12 Conclusion 13 References 14 Case Summary Bank of America (BoA), founded in 1998 is an American multinational banking and financial services corporation. They were notably a key player in the global financial crisis that struck in 2008. Ken Lewis, a former CEO acquired Countrywide Financial and Merrill Lynch. To his dismay, the acquisitions turned out to be disastrous as the first week of January 2009 enlightened the problems that existed within Countrywide Financial and Merrill Lynch; they were bankrupt with assets in their balance sheet that set a new mark for toxicity in the financial market. This required attention and direct aid from the Federal Government itself. However, following this month BoA fell by 65 percent. Just a month after the first quarter of 2009, Ken Lewis was made CEO and stripped off chairmanship by the shareholders’...
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...Bank of America: Analyzing Corporate Citizenship In the words of Thomas Friedman, “If you don't visit the bad neighborhoods, the bad neighborhoods are going to visit you.” With “bad neighborhoods” symbolizing customers, this portrays a direct consequence of what can happen if a company does not take into account the impacts of its business decisions. As society progresses through the 21st century, it is clear that the people along with the government are beginning to demand more from companies. Quality products and services are still highly regarded; however, becoming a good corporate citizen is turning out to be an important part of a company’s reputation. Good corporate citizenship is when companies look beyond business goals and take in consideration the effects of their business decisions. Giving back to the community is also something businesses do, however, is not part of good corporate citizenship. This is true because financially providing to a local community has no correlation to business as it is simply a way for businesses to advertise and market their product. Therefore, actions such as emphasizing an environmental program, using methods that respect social and cultural values, or providing employees with special benefits such as a company car or expense account illustrate examples of good corporate citizenship. Making sure stockholders, shareholders, and local residents are respectfully treated is also important. These actions constitute good corporate citizenship...
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...Module 1 – Case Study ETH501 – Business Ethics Introduction Making moral decisions in today’s workplace is sometimes a very difficult task. In the business world of today, society expects that large corporations will make moral decisions that will positively affect its business and its patrons. Recently, Wikileaks (not affiliated with Wikipedia) has been in the national and world spotlight as a corporate bad guy because it made the decision to release what is considered vital information on several large businesses that could adversely affect those said businesses. Reportedly, the information on Wikileaks is not just assumed authentic but is actually authentic and has been vetted so that the innocent are protected. With this being said, Wikileaks reportedly has in its possession a hard drive possibly belonging to an executive with Bank of America and plans to release the information contained on the hard drive to “take down” the bank and expose an “ecosystem of corruption” (Schwartz, 2011). In today’s world, freedom of press and freedom of speech is something that is held in the highest regard and is supported fully. The question is when does this freedom go too far and cross the line of moral acceptance. In addition, does the information in question violate the privacy of those involved and is it something that is just being used to draw attention to a particular person or organization. It is possible that by releasing confidential information about a large corporation...
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...Case Analysis of Bank of America: Mobile Banking Marcus J. Durr Professor Trittipo AMBA 650 Section 9047 January 31, 2012 Abstract During the tough time for the banking industry when many banks have gone into bankruptcy or have began add numerous fees to their service in order to stay afloat; Bank of American (BoA) has also experienced some of the effects of the financial crisis. In an effort to weather the storm BoA began to incorporate mobile banking. While its competitors were implementing their own mobile banking through mobile apps, mobile web, and short message system (SMS), BoA focused on the mobile app and mobile web only. This case analysis takes a look at some of the major strategic issues and problems, such as BoA leaving out a portion of their target market by opting out of using SMS, which left a portion of their market base outside in the cold. However there are some positives, that BoA realized and took swift action to capitalize on the fast emerging market of mobile banking. In the conclusion, recommendations are given on what BoA can do to keep a stable position in the future, as mobile banking will have a huge impact on the banking industry. Case Analysis of Bank of America: Mobile Banking In the banking industry Bank of America has grown to become a household name and evidence of their marketing efforts through all channels can be seen just about everywhere you go. Over the past few years the banking industry has surly gone through some turbulent...
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...need to be applied as a standard for everyday choices in life and business. This is directly related to the decisions human beings make. Cavico (2009) states utilitarianism is more than just moral philosophy. It is a way of reformation and used extensively in government decision making. This will be discussed further in the Bank of America-Merrill Lynch merger. Utilitarianism is considered a scientific system of ethics and not just a philosophical theory of ethics. Utilitarian ethics follows the belief of maximizing the greatest good for the largest number of people. As utilitarianism is identified, one needs to learn that the greatest good could be based on aggregate principle or a distributive principle. The Bank of America-Merrill Lynch merger will be assessed in regards to who, what and how the greater good will be affected in this merger. Within utilitarianism, a moral philosophy is developed that focuses on the consequences of specific actions. An action is done, then observed and then analyzed. After identifying all the people that were involved, one needs to ask the question, “Do the sum of good consequences outweigh the sum of the bad consequences?” Quantify all the good and bad consequences in the scenario and if the good consequences are greater than the bad consequences then the action was moral and vice versa. In this paper, the actions of the Bank of America-Merrill Lynch merger will be discussed, evaluated and quantified with the Richard DeGeorge Utilitarian perspective...
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...Bank of America 2010 Annual Report Maggie Ballantyne Professor Adams Accounting 100 2/26/2012 Bank of America December 31, 2010 Abstract This paper analyzes Bank of America’s 2010 annual report. It discusses the main sections, key factors influencing the financial performance, the company’s primary assets, and how the management characterizes the internal controls of the company. A company’s annual report shows its stockholders the corporation’s financial statements and a summary of the operations over a twelve month time period. I chose Bank of America’s 2010 annual report for this paper. There are a few key sections that when analyzing an annual report you want to mainly focus on, and those main sections include, the auditor’s report, financial statements, the managers discussion, and notes to the financial statements. Each section will be discussed in this paper along with an analysis of the key factors that influenced the company’s financial performance, the company’s primary assets, and an explanation of how the management characterizes the internal control environment of the company. First, I want to analyze the financial statements, such as the income statement and the balance sheet. During 2010 Bank of America bought a mortgage company and a global card service company which caused the corporation to take a net income loss for the financial year. On the income statement, the home loans portion of the corporation had a loss of 8.9 billion dollars while...
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...development of the application is very expensive. Second, it should classify its market segments based on Exhibit 3b (Global Consumer and Small Business Banking, Global Corporate and Investment Banking, Global Wealth and Investment Management) then designs a specialized application based on the needs of the target market. The advantage is that it would step ahead of its competitors in providing customized solution for each market listed above. In turn, it will increase customer satisfaction and that would lead to expand its current market in each segment. This will result in increasing mobile banking by integrating BOA’s business line spreading its platform to increase more market coverage.... 2. Case Analysis of Bank of America: Mobile Banking Case Analysis of Bank of America: Mobile Banking Marcus J. Durr Professor Trittipo AMBA 650 Section 9047 January 31,...
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...Bank of America SWOT Analysis In 1906, known at that time as The Bank of Italy, a face and a name was the only requirement to get a loan with Bank of America. A few days after the 1906 earthquake hit San Francisco, its founder Amadeo Peter Giannini, “quickly set up shop on the docks near San Francisco's North Beach. With a wooden plank straddling two barrels for a desk, he began to extend credit "on a face and a signature" to small businesses and individuals in need of money to rebuild their lives. His actions spurred the city's redevelopment” (Kadlec 2008). He based his business on openness and trust, driven to help the immigrants that other banks would not serve. Fast forward to present day, Bank of America is the largest bank in the United States with over 2 trillion total assets (Grocer 2011) and is the 15th largest bank worldwide ("Top Banks of the World", 2011). These rankings are impressive and one may take for granted that investing in Bank of America’s mutual funds is a safe investment. However, Bank of America has also been plagued with bad publicity surrounding foreclosures during the financial crisis in 2008 and bailouts and employee layoffs extending into 2011. These performance issues, positive and negative, need to be considered when making the decision to invest in this corporation. Not only is past performance an important factor to consider but also future standing. To help guide this decision-making process a Strengths, Weakness, Opportunities and Threats...
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...TP027192 INTAKE CODE: UC2F1501IBM BM061-3.5-2-BEG MODULE NAME: BUSINESS ETHICS GOVERNANCE TOPIC: BANK OF AMERICA’S MOST TOXIC ASSET (CASE B) INDIVIDUAL ASSIGNMENT LECTURER: FARAHIDA BINTI ABDUL JAAFAR DATE ASSIGNED: 06th MARCH 2015 DATE DUE: 17th APRIL 2015 Table of Contents INTRODUCTION. 3 Summary. 3 Ethical Dilemma. 3 Affected Stakeholders. 4 ANSWER FOR QUESTION 1. 4 ANSWER FOR QUESTION 2. 5 ANSWER FOR QUESTION 3. 6 ANSWER FOR QUESTION 4. 7 ANSWER FOR QUESTION 5. 8 ANSWER FOR QUESTION 6. 8 CONCLUSION. 9 REFERENCES. 10 BANK OF AMERICA’S MOST TOXIC ASSET (CASE B). INTRODUCTION. Summary. Ken Lewis was a Chief executive officer of Bank of America, he was appointed as American Banker’s "banker of the year "after purchasing Countrywide Financial and Merrill Lynch. The bank acquisition of Merrill Lynch in 2008 made Bank of America the world's largest wealth management Corporation and a major player in the investment banking market. The deals were applauded and made Ken Lewis even more worth being named as American Banker’s “banker of the year” During first week of January 2009 both Countrywide Financial and Merrill Lynch were bankrupt with assets in their balance sheet which set a new standard for toxicity in financial market, resulting in forfeiture for the bank and requiring financial assistance from the Federal Government. Bank of America was forced to welcoming U.S. taxpayers as the company’s largest shareholder. BOA stock was down by 65...
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...accurately compare these two companies in a variety of ways and determine which company would be better to invest in. Barclays is a British based company that operates under the International Accounting Standards (IAS) while the U.S. based Bank of America operates under U.S. Generally Accepted Accounting Principles (GAAP). We examined the effects these different standards had on the two companies. We then gathered information from Barclays and Bank of America’s consolidated financial statements and used this information to calculate various ratios needed for analyzing the two companies. In addition, we compared similarities and differences between Barclays and Bank of America in relation to how they disclose and deal with various accounting and reporting issues. These issues include disclosure of employee information, disclosure of foreign operations, the valuation and disclosure of intangible assets, and numerous others. We also took the foreign currency exchange rates into account and examined the impact it had on Barclays as well as Bank of America. II. History Both Barclays and Bank of America have a history of great service, and being one of the premier banks of England and the United States respectively. It is impressive that Bank of America can be looked at as the equivalent of Barclays when it originated almost 300 years later, while both are prominent now, they each chose different paths to get to where they are now. Barclays In the late 17th century, there were many...
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...Design | Bank of America | Mobile Banking | | Ashlee BlairDaniel CareyStephanie FortnaBrandi Stricklin | 8/4/2011 | | Table of Contents * Introduction: Main Challenge ……………. 2 * Industry Description ……………………… 3 * Brand Analysis…………………………..... 8 * SWOT Analysis………………………….... 10 * Business Model …………………. ………. 13 * Digital Marketing ………………………… 16 * Suggested Solution ……………………….. 21 * Exhibits …………………………………… 23 * References ………………………………… 26 Introduction Bank of America launched mobile banking in May 2007. Mobile Banking lets customers easily and securely access balance information, pay bills with optional Bill Pay service, transfer funds, and find nearby ATMs and banking centers through a mobile application on their smartphones, and through mobile web on their phone browser. Main Challenge WHAT: Increasing overall growth in mobile banking in the financial services industry. Douglas Brown Senior Vice President of Mobile Product Development was quoted, “In less than 3 years we have four million mobile banking customers. That’s an adoption rate almost five to eight times that of our online banking several years ago.” Line-of-business managers are looking for leveraged mobile platforms to meet the needs of their specific businesses. The capabilities of mobile banking through the use of your smartphones or mobile web have become popular with today’s bank customers. WHO: * Jen McDonald, SVP of Bank of America (Digital...
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...Design | Bank of America | Mobile Banking | | Ashlee BlairDaniel CareyStephanie FortnaBrandi Stricklin | 8/4/2011 | | Table of Contents * Introduction: Main Challenge ……………. 2 * Industry Description ……………………… 3 * Brand Analysis…………………………..... 8 * SWOT Analysis………………………….... 10 * Business Model …………………. ………. 13 * Digital Marketing ………………………… 16 * Suggested Solution ……………………….. 21 * Exhibits …………………………………… 23 * References ………………………………… 26 Introduction Bank of America launched mobile banking in May 2007. Mobile Banking lets customers easily and securely access balance information, pay bills with optional Bill Pay service, transfer funds, and find nearby ATMs and banking centers through a mobile application on their smartphones, and through mobile web on their phone browser. Main Challenge WHAT: Increasing overall growth in mobile banking in the financial services industry. Douglas Brown Senior Vice President of Mobile Product Development was quoted, “In less than 3 years we have four million mobile banking customers. That’s an adoption rate almost five to eight times that of our online banking several years ago.” Line-of-business managers are looking for leveraged mobile platforms to meet the needs of their specific businesses. The capabilities of mobile banking through the use of your smartphones or mobile web have become popular with today’s bank customers. WHO: * Jen McDonald, SVP of Bank of America (Digital...
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...the raising of the National Debt Ceiling, and seeking immunity from prosecutors in a Mortgage deal are economic trends that Bank of America is facing today. According to Rugaber (2011), the Labor Department reported that unemployment benefits adjusted to 400,000, decreasing 1,000 from the previous four months (para.3-4). While in Washington, D. C., Brown (2011), reported that “after months of partisan gridlock, both houses of the U.S. Congress have approved a bill to raise the federal borrower limit and cut government spending (para.1). On the other hand, Touryalai (2011) confirms that Bank of America is seeking immunity in a Mortgage deal with prosecutors that would make the bank pay a hefty fine which would be used toward writing down certain homeowner’s mortgages (para.2). The trends described above are issues that Bank of America and other financial institutions are currently tackling and adapting to as they develop. The following business analysis will outline on how each development is affecting the organizational and operational philosophy of the bank; possible strategies that the bank can use to adapt will also be described; implementation of tactics to address each trend will be elaborated on; how the human resource management plays in helping the company achieve its business goals, and last the analysis will give a summary on whether Bank of America is a company worth to invest in or not. The unemployment trend is an issue that has been going on for the past decade. According...
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...RESEARCH & DESIGN Bank of America Mobile Banking Ashlee Blair Daniel Carey Stephanie Fortna Brandi Stricklin 8/4/2011 Table of Contents Introduction: Main Challenge ……………. 2 Industry Description ……………………… 3 Brand Analysis…………………………..... 8 SWOT Analysis………………………….... 10 Business Model …………………. ………. 13 Digital Marketing ………………………… 16 Suggested Solution ……………………….. 21 Exhibits …………………………………… 23 References ………………………………… 26 Introduction Bank of America launched mobile banking in May 2007. Mobile Banking lets customers easily and securely access balance information, pay bills with optional Bill Pay service, transfer funds, and find nearby ATMs and banking centers through a mobile application on their smartphones, and through mobile web on their phone browser. Main Challenge WHAT: Increasing overall growth in mobile banking in the financial services industry. Douglas Brown Senior Vice President of Mobile Product Development was quoted, “In less than 3 years we have four million mobile banking customers. That’s an adoption rate almost five to eight times that of our online banking several years ago.” Line-of-business managers are looking for leveraged mobile platforms to meet the needs of their specific businesses. The capabilities of mobile banking through the use of your smartphones or mobile web have become popular with today’s bank customers. WHO: • Jen McDonald, SVP of Bank of America (Digital Marketing Group) ...
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...Assignment #1 Bank of America Melissa Shuler February 14, 2012 HRM 532 Dr. Marie-Line Germain Outline the talent management program that led to success for the company. Before we can go into the talent management program that led to the success for the company we must know how the company began. The Bank of America was formed in 1904 when the founder of Bank of Italy, Amadeo Giannini which was solely out of San Francisco in an effort to cater to immigrants that were denied services by other banks based upon their status. According to the article there was a fire in 1906 that was caused by an earthquake that completely took out the bank. In order to make sure things were going to get back to the way they once were, Giannini handed out loans to those who were willing to help rebuild and hoped that things would get back to the way they were and then the loans were repaid (Goldsmith, 2010). Amadeo Giannini had ambitious plans to create a bank trading at a national level. He expanded BankAmerica operations into the western U.S. states, in the process moving into the insurance market (with the support of his holding company, the Transamerica Corporation). However, Giannini’s plans were somewhat thwarted by two factors. Firstly, BankAmerica and TransAmerica’s relationship was curtailed by the 1956 Bank Holding Company Act, which forbade banks from possessing non-banking organizations. Secondly, federal banking regulation dictated that banks should not be active interstate...
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