After the devastating earthquake in April 1906, looters roamed the streets of San Francisco. Rescuing gold and silver from his small Bank of Italy, A.P. Giannini gained fame by setting up a makeshift bank on a North Beach wharf and making loans to local residents "on a handshake."
A.P. Giannini in 1904. Called "the handsomest man in North Beach," the 22-year old produce merchant married the daughter of the Beach's richest man. When Giannini's father-in-law died in 1902, his widow and 11 children did not divvy up his $1 million estate. Instead, they enlisted the talented Giannini to manage the property. It included a large block of stock in North Beach's first Italian bank. (Bank of America Historical Collection)
Amadeo Peter Giannini was born in San Jose, California in 1870. The son of Italian immigrants had an outsized personality and unlimited faith in the American dream.
Giannini began by selling fruits and vegetables from a horse-drawn wagon. But he was made for bigger things. At age 34, he launched a small bank in the Italian neighborhood of North Beach, San Francisco. At the time, big banks lent only to large businesses, handled deposits of the wealthy, and frowned on aggressive advertising.
The novice financier knocked on doors and buttonholed people on the street. He persuaded "unbanked" immigrants that gold and silver coins were safer in vaults than under mattresses. Moreover, the money would earn interest at his "Bank of Italy."
On the morning of April 18, 1906, a massive earthquake hit San Francisco. The ensuing fires burned down the large banks. Their superheated metal vaults could not be opened for weeks—lest the cash and paper records catch fire when oxygen rushed in.
As flames threatened his one-room bank, Giannini spirited $80,000 in coins out of town. He hid the precious metal under crates of oranges and steered his wagons past gangs of thugs and looters in the streets.
As other banks struggled to recover, Giannini made headlines by setting up a makeshift bank on a North Beach wharf. He extended loans to beleaguered residents "on a handshake" and helped revive the city.
After the devastating earthquake in April 1906, looters roamed the streets of San Francisco. Rescuing gold and silver from his small Bank of Italy, A.P. Giannini gained fame by setting up a makeshift bank on a North Beach wharf and making loans to local residents "on a handshake." (California History Room, California State Library, Sacramento, California)
The innovative bank welcomed small borrowers who might otherwise have to use high-cost loan sharks. Most banks at the time regarded people with modest incomes as credit risks not worth the paperwork. But experience had taught Giannini otherwise: that working class people were no less likely to pay their debts than the wealthy.
Seeking more customers, the former produce salesman returned to his old haunts—the fertile valleys of California. He "walked in rows beside farmers engaged in plowing" to explain how bank branches make credit cheaper and more reliable. Town by town, he built the first statewide branching system in the nation.
On November 1, 1930, the Bank of Italy in San Francisco changed its name to Bank of America. The bank today has the same national bank charter number as Giannini's old bank— #13044.
When A.P. Giannini died in 1949, the former single-teller office in North Beach claimed more than 500 branches and $6 billion in assets. It was then the largest bank in the world.
FAQs
On November 1, 1930, the Bank of Italy in San Francisco changed its name to Bank of America. The bank today has the same national bank charter number as Giannini's old bank— #13044. When A.P. Giannini died in 1949, the former single-teller office in North Beach claimed more than 500 branches and $6 billion in assets.
What is the Bank of America mission statement? ›
To help make financial lives better by connecting clients and communities to the resource they need to be successful.
What is the philosophy of Bank of America? ›
Values and purpose. We make financial lives better for our clients and our communities through the power of every connection. Our employees are at the heart of this purpose, and are key to driving responsible growth.
What's special about Bank of America? ›
What we offer. Bank of America is one of the world's leading financial institutions, serving individuals, small- and middle-market businesses, large corporations, and governments with a full range of banking, investment management and other financial and risk management products and services.
What family owns Bank of America? ›
Bank of America is one of the largest consumer banks in the United States, with over $3 trillion in assets. The largest shareholder is Berkshire Hathaway, along with fund managers like BlackRock and Vanguard.
Is Bank of America going under? ›
Overall, Bank of America appears to be in a relatively healthy financial position and is not currently in imminent danger of collapse. However, as with any financial institution, there are always risks involved, and customers and investors should always monitor the bank's financial health and risk profile.
What is the Bank of America ethics scandal? ›
In its investigation, the CFPB found that Bank of America engaged in unfair and abusive acts and practices that resulted in Californians not getting their unemployment benefits at the height of the pandemic, when many people needed the money the most.
What is Bank of America's culture? ›
We've built a strong culture of inclusion by fostering an environment of trust and engagement, where all employees are empowered to bring their whole selves to work.
Is there an issue with Bank of America? ›
User reports indicate no current problems at Bank of America
Clients can review their account balances and transactions, deposit checks and tranfer money through online banking and mobile banking apps for iPhone, iPad, Android, Windows Phone, Blackberry, Kindle Fire and other mobile operating systems.
What is a random fact about the Bank of America? ›
The history of Bank of America can be traced back to 1904, when it was known as Bank of Italy. At that time, the feature that distinguished the Bank of Italy from other American banks was that it offered financial services to immigrants arriving in the United States, not only the wealthiest American citizens.
Bank of America pros and cons
Bank of America has approximately 4,300 branch locations and 17,000 ATMs, so you'll always have access to your money. The minimums to open a checking account are relatively low, so it's fairly easy to switch banks. If you can qualify for their Preferred Rewards program, it's worth it.
What is the reputation of Bank of America? ›
Bank of America Ratings
Based on our research on more than 100 traditional and online banks and credit unions, we give Bank of America 4 out of 5 stars overall.
What Bank did Bank of America takeover? ›
In 2004, Bank of America announced it would purchase Boston-based bank FleetBoston Financial for $47 billion in cash and stock. By merging with Bank of America, all of its banks and branches were given the Bank of America logo.
Why did Bank of America change its name? ›
Bank of America is still called Bank of America, and the company's full name is Bank of America Corporation. The modern Bank of America Corporation was formed when BankAmerica was acquired by Nations Bank in 1998, though parts of the company date back over 200 years.
What was the first Bank of America ever? ›
The Bank of the United States, now commonly referred to as the first Bank of the United States, opened for business in Philadelphia on December 12, 1791, with a twenty-year charter.
What was Bank of America known as in 1904? ›
Here are a few more important moments to remember as we recognize this anniversary day: 1904: A.P. Giannini founded Bank of Italy, later renamed Bank of America, to support clients and small business owners overlooked by other banks at the time.
