NationsBank is one of the largest banking companies in the United States, based in Charlotte, North Carolina. The company called NationsBank was formed through the merger of several other banks in 1991, and before that has been through several iterations. Its oldest predecessor was the Commercial National Bank (CNB), established in 1874, and the American Trust Company was founded in 1909. In 1998, NationsBank acquired BankAmerica, and modified the more famous name to Bank of America.
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History
Background and its foundations
NationsBank traces its roots to two banks in Charlotte. Commercial National Bank (CNB), the early pioneer of NationsBank, was formed in 1874. The American Trust Company was established several blocks under Tryon Street in 1909.
In 1957, the American Trust joined the Commercial National to form the American Commercial Bank. American Trust is a nominal victim, and its president, Addison Reese, becomes president of the joint bank. Just four years later, in 1960, American Commercial joined the Greensboro-based National Security Bank to form the North Carolina National Bank. Although American Commercial is a nominal survivor, it surrenders the state charter of North Carolina and takes over the national charter of Security. In the early 1970s, the company was reorganized as a subsidiary of NCNB Corporation.
In 1973 Reese succeeded as CEO by Tom Storrs, who the next year changed the NCNB presidency to 39-year-old Hugh McColl, who started an aggressive period of expansion. This was initially a defensive move. At the time, it was feared that New York City's money center banks would probably devour the local Southern banks. It is believed that the only way to prevent this is if the stronger banks in the region become too rich to be taken over. NCNB flourished outside North Carolina for the first time in 1982, when he bought Lake City, Florida's First National Bank of Lake City. McColl became CEO of NCNB the following year. McCloll will remain CEO until 2001, usually as president and intermittent chairman (after several major mergers of leadership are temporarily given to the head of the acquired bank, such as Bennett Brown of C & S/Sovran, Andrew B. Craig III of Bancshares Boatmen, and Charles Rice of Barnett Bank).
Mergers and acquisitions
In 1988, NCNB assets grew to $ 60 billion after purchasing the failed First RepublicBank Corporation from Dallas, Texas from FDIC. FirstRepublic, Texas's largest bank, has entered the FDIC curator after filing for bankruptcy in March, and is the biggest failure of FDIC banks in history.
At that time, NCNB has become associated with "mergers, acquisitions, expansions, integration". From 1989 to 1992, NCNB acquired more than 200 public banks and communities, many of them through the Trust Resolution program. The lucrative terms, with the FDIC assuming most of the loan portfolios and absorbing mark-to-market losses, allow NCNBs to expand profits, and cost-cutting culture increases margins. Finally, NCNB builds a branch network stretching from Virginia to Florida, next to Texas.
In 1989, NCNB tried to become stronger by launching hostile offers for Citizens & amp; Southern Corporation of Atlanta, which had become South America's largest bank during the 20th century until NCNB passed it. Partly as a defensive act, C & amp; S joined the Sovran Financial Corporation of Norfolk, Virginia to form C & amp; S/Sovran.
Only two years later, however, C & amp; S/Sovran was almost knocked down by a troubled loan on the Washington, D.C./Northern Virginia market, and all but forced to join NCNB to form NationsBank. It created the largest bank in the Southeast, with assets of $ 118 billion. Merger allows NCNB/NationsBank to enter Tennessee and Maryland for the first time. It also makes the bank a major player in Georgia and Virginia, where banks have little presence.
Growth in the 1990s
In July 1992, NationsBank agreed to invest $ 200 million in Maryland National Corporation for a 16 percent nonvoting share and option to purchase the entire company, which was then executed in February 1993.
In March 1993, NationsBank acquired Chicago Research and Trading Group, evolving into derivatives and dramatically increasing foreign exchange trading.
In September 1995, NationsBank announced the acquisition of Bank South Corp for $ 1.6 billion. The deal significantly increased the presence of the already large NationsBank in Atlanta.
In 1996, NationsBank acquired the St Bancshares-based Boatmen. Louis for $ 9.6 billion. The combined bank became the largest in South America, with assets of $ 225 billion, and 2,600 branches stretching from North Carolina to New Mexico.
The following year, NationsBank acquired the largest bank in Florida, Jacksonville-based Barnett Bank, for $ 15.5 billion, raising its total assets to $ 284 billion.
In June 1997, NationsBank acquired Montgomery Securities in a $ 1.2 billion transaction. Montgomery was integrated into the company's existing broker-dealer, NationsBanc Capital Markets , and the joint subsidiary was renamed NationsBanc Montgomery Securities .
Bank of America Merger
In 1998, he acquired BankAmerica Corporation of San Francisco in what was the biggest bank merger in American history at the time. Although NationsBank is a nominal survivor, the bank that joins take on the name of the more famous Bank of America, and operates under the Bank of America charter. However, until today it is headquartered in Charlotte in the present location of Bank of America Corporate Center, and maintains a history of stock prices before 1998 NCNB/NationsBank. With this merger, all NationsBank holdings, including some of the tallest buildings in the country (such as Bank of America Plaza in Atlanta and Bank of America Corporate Center) took the name Bank of America. McColl became chairman and CEO of the joint company with B's A David Coulter as president, but Coulter was quickly forced out for the sake of Bankbank's Ken Lewis. In 2001, McColl submitted the remaining post to Lewis, who started his career at NCNB in ​​1969. Lewis resigned in 2009 and was replaced by Brian Moynihan - marking the first time that the bank has not been led by someone with roots at NCNB/NationsBank.
BankAmerica broker-dealers, BancAmerica Robertson Stephens , were integrated into NationsBanc Montgomery Securities , and the joint subsidiary was renamed Banc of America Securities, headquartered in Charlotte.
Maps NationsBank
See also
- Banking in the United States
- North Carolina Economy
References
External links
- NationsBank (Archive)
Source of the article : Wikipedia
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