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Merger integration at bank of America the trust web project Case Study
1. Briefly describe the company line of business, growth history, organizational structure as
relevant to the case, and competitor/regulatory landscape again relevant to issues in the
case.

The history of Bank of America goes back to more than two hundred years ago. It is a
financial institution and one of the largest in the world. It has been in the central point in the
development of economies nations and communities. It offers a wide range of services to its
customers both banking and nonbanking financial services and products. The bank deals with
individuals, both small and medium scale business, Government and corporations with
banking services at, management of assets, investments and other services and products
related to finance and risk management. The bank has been divided into three main segments
so as to be able it to serve their customers efficiently. Each of the segments has been further
subdivided into sub segments. The three main segments include

Global consumer and small business banking

Global corporation and investment banking

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Global wealth management

Bank of America has continued to grow over the year, becoming the largest banks in
terms of deposit share, through acquisition of banks all over the United States. However, there
have been competitors in terms of market acquisition, profits and assets. However, from its
history, we can say that the bank has accomplished in the strategic evolution through the
projected expansion. Apart from merging, the company has also expanded through advanced
technology for the banking services and also development of innovative banking services. At the
end of the year 2006 the bank recorded 21.1 billion U.S Dollars in annual income, revenue of
73.0 billion U.S Dollars. Additionally, has an outstanding 706 billion U.S Dollars, in loans and
leases. Additionally, the bank is reported to be one of the top three in the management of private
wealth, therefore, based on the private wealth under management is worth 261 U.S Dollars
(Pisano and Staats 2).
As discussed above the bank has expanded over the years through acquisition of other
financial institutions. On the 20th of November 2006 Bank of America decided to merge with the
U.S Trust. The U.S Trust was a small group of businessmen in New York formed in the year
1853. Their mission was to satisfy the investment needs of wealthy families. The film was
approximately 153 years old it prides itself as one of the oldest private bank in the United States.
At the time of accusation the assets under management were 94billion U.S Dollars, while the
total client assets were 159 U.S Dollars (Pisano and Staats 1). The owners of the bank and
management have changed over time; however, the objective of the firm has remained the same.
This is evident since the firm had initially been bought by Charles Squad in 2006 at 2.7 U.S
Dollars. His aim was to expand it by increasing its target customers, however; he was unable and

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that is where the bank of America came in (2006). It was to be acquired by the bank of America
at 3.3 billion U.S Dollars.
The purpose of acquiring the U.S Trust by bank of America was to increase its size and
competence, in the banks wealth business and position it as the largest financial institution
managing private wealth (Pisano and Staats 2).
Additionally, Keith Banks, who oversaw the merging, describe it as a test of leadership
style and decision making. The whole exercise was not as easy since they had to create a
compensation structure from the managers. Furthermore, dealing with two groups with different
cultures was also a test of leadership.
2. Develop 4 recommendations for Problem Solutions and New Opportunities
As soon as the bank of America acquired the U.S Trust problems started almost
immediately advisors began to leave, and the economy started to tank. The recommendation to
solve the problem was first to establish why the customers were unhappy. Secondly, it is
important, set strategies that are meant to spot global opportunities that match the services and
products offered by the bank. Bank of America needs to work towards building its brand as a
financial supermarket, where all financial issues of all people would be sorted. It should have
been the best way to capture the new opportunities in the market, hence able to compete and
emerge as the best financial institution. The opportunities to capture the business and to become
the best bank in the financial world, to grow faster than the commercial and consumer bank as a
result of its demography. Additionally, the organization is going through a reconstruction after
the acquisition of the new firm. This will allow it to integrate new businesses.

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3. Any relevant, critical post-case events to report?
The bank had been known to have a smooth acquisition of other firms; however, with the
U.S Trust the process was a turbulent one. The company had to capitalize with the shot in the
global wealth, while the new boundaries of the banks face much competition from other
companies. These Companies were aggressively looking for rich investors, giving emphasis to
global networks and a wide range of abilities such as advice on investments and tax and offering
finance to purchase private airplane. Additionally, the industry had exploded with other financial
companies who argued that they could provide free personalized services and advice. Therefore,
bank of America had the challenge of differentiating its private banking business from its
impressive consumer brand, mostly from the middle class. Additionally, the bank of America still
faces security issues with its website (Pisano and Staats 7). It will defiantly have an impact on
customer service. Meaning most of their details are not as safe as they would prefer.

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Works cited
Pisano, Gary, and Bradley Staats. 'Merger Integration At Bank Of America: The Trust Web
Project'. (2010): n. pag. Print.