Bank of AmericaBusiness and Government Relations

Presentation

GROUP: SKYLINE

• Huynh Thanh Nguyen• Nguyen Phan Dang• Vo Tung Thien An

• Ngo Thi Xuan Uyen• Tran Hong Dao

Background Information• Public Company

Incorporated: 1904 as Bank of Italy; 1960 as North Carolina National Bank

• Employees: 142,724

• Total Assets: $621.7 billion (2001)

• Stock Exchanges: New York

• Ticker Symbol: BAC

• NAIC: 551111 Offices of Bank Holding Companies; 52211 Commercial Banking

Background InformationBank of America is one of the world's largest financial institutions, serving individual consumers, small businesses, middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 49 million consumer and small business relationships with approximately 5,000 retail banking offices and approximately 16,000 ATMs and award-winning online banking with 30 million active users and more than 15 million mobile users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

The Various Stakeholders of Bank of America

Stakeholder Engagement• Bank of America’s stakeholders include our customers,

clients, investors, regulators, community organizations, employees and others.

National, regional and global organizations:• The Alders gate Group• American Bankers Association American Chamber of Commerce to the EU• American Securitization Forum• Asia Securities Industry and Financial Markets Association• Association for Financial Markets in Europe• British Bankers’ Association• Business for Social Responsibility • Business Roundtable• Center for Climate and Energy Solutions (C2ES) Business Environmental Leadership Council• Center for Strategic and International Studies• Centre for European Policy Studies• The Clearing House Association• Climate Markets & Investment Association• Consumer Bankers Association• Council of State Governments

• Council on Foreign Relations• Electronic Payments Coalition• Eurofi — Financial Services in Europe• The European Institute• Finance and Leasing Association• Financial Services Forum• Financial Services Roundtable• Futures and Options Association• Futures Industry Association• Global Coalition on Aging• Global Financial Markets Association• International Capital Market Association• International Swaps and Derivatives Association• Investment Company Institute• Mortgage Bankers’ Association• National Business Coalition on E-Commerce & Privacy• The Risk Management Association• Securities Industry and Financial Markets Association• State bankers’ associations• UK’s Association of Foreign Banks• UK Cards Association• U.S. Chamber of Commerce• U.S. Partnership for Renewable Energy Finance

Problems and challenges1. Death of Bank of America internIntern Moritz Erhardt was found dead in the shower after having worked three consecutive all-nighters. The 21-year-old suffered an epileptic seizure. Hazing practices of pulling late night work hours are not uncommon in the banking industry, as there are enormous workloads that come with being an intern.

2. Bank of America sued for $2.15 million.FINRA, The Financial Industrial Regulatory Authority, the biggest independent securities regulatory company, fined the brokerage divisions of Bank of America for $2.15 million based on allegations that the bank sold floating-rate bank loan funds that harmed the risk options of its clients.

3. Bank of America Finds a Mistake: $4 Billion Less CapitalThe mistake, which had gone undetected for several years, led the bank to report recently that it had $4 billion more capital than it actually had. After Bank of America reported its error to the Federal Reserve, the regulator required the bank to suspend a share buyback and a planned increase in its quarterly dividend.

4. Environment impactWhile Bank of America claims to support environmental responsibility, it continues to lead investments in coal, one of the biggest threats to public health and climate stability," RAN stated. Bank of America is America's leading financier of this dirty industry in the U.S. Its current plans to underwrite Coal India's share offering are deepening its involvement, and show a worrying disregard for biodiversity and basic workers' rights.

Stakeholder engagement• Bank of America’s stakeholders include customers,

clients, investors, regulators, community organizations, employees and others. They work with these groups through formal, mandated engagements such as shareholder meetings, as well as through our ongoing outreach to customers, nonprofit organizations and community groups.

Employee treatment• Bank of America embrace the rich diversity of

workforce, and they look to service values and ethical principles to unite and focus on common goals. They succeed when they collaborate and treat everyone – their coworkers, customers, suppliers and members of the communities they serve – respectfully, fairly and with dignity. They provide a safe workplace and follow all laws relating to employment rights.

Corporate social responsibility• Corporate social

responsibility is attached to Bank of America’s values and informs how they conduct business, develop products and services and deliver on their goals and commitments. Bank of America’s Corporate Social Responsibility program not only guides the values and principles of their company, but also makes a meaningful impact in communities around the world.

Environment sustainabilityBank of America issues $500 million Green

Bond • Bank of America’s Green Bond is a senior bond

where the funds will be used specifically to finance green investments such as renewable energy and energy efficiency projects.

• $50 billion environmental business initiative to help address climate change, reduce demands on natural resources and advance lower-carbon economic solutions .

Social ImpactTURN YOUR MILES (RED) is an eight-week campaign that empowers walkers, runners and fitness enthusiasts worldwide to make a collective contribution that will save lives and effect change. For each Nike+ Running mile pledged to (RED), Bank of America will donate 40 cents – up to $1 million – toward the fight to eradicate mother-to-child HIV transmission.

Empowering woman leaders Bank of America has made a $10 million investment through Calvert Foundation targeted to women in the developing world. Bank of America start make loans to organizations empowering women through access to finance, affordable healthcare, and capacity building.

Promoting strong economiesThey promote economic growth and neighborhood revitalization by extending credit to individuals, local businesses and community organizations, while ensuring a fair return for our shareholders. Promoting a diverse workplace starts at the topEvery day, they focused on creating not only a great place to work, but also an environment where employees, customers and communities around the world can reach their goals and connect with each other.

Problems may have• Demands for greater disclosure• Increased customer interest• Growing investor pressure• Competitive labor markets

Corporate Power In Society

• Bank of America/Countrywide’s discriminatory mortgage lending and its implications for racial segregation

1. Background about the case

2. Detail

3. Result

• A huge settlement in a high-profile mortgage-discrimination case against Countrywide Financial.

• Bank of America bought Countrywide back in 2008

• Countrywide discriminated against African-American and Hispanic.

1. Background:

On December 21, 2011Bank of America settled a Justice Department complaint alleging racial discrimination in mortgage lending by its Countrywide subsidiary.

The face of widespread discriminatory mortgage lending practices helped create, since has perpetuated:

• Racially segregated• Impoverished neighborhoods.

The history of “Law-sanctioned” racial segregation has had many damaging effects.

2. Detail:Bank of America’s Countrywide subsidiary:

• Charging higher rates and fees on mortgages to minorities than to whites with similar characteristics

• Shifting minorities into subprime mortgages with terms

Racially discriminatory practices in mortgage lending (known as “reverse redlining”)

Redlining – the blanket denial of mortgages to minority homebuyers.

Redlining contributed to racial segregation:

• Keeping African Americans out of predominantly white neighborhoods

Reverse redlining had a similar result:

• Exploitative mortgage lending• Exacerbating racial segregation

3. Result:• The legal settlement requires Bank of

America to spend $335 million to compensate victims of Countrywide’s discriminatory lending practices.

• Do little to address the comparatively poor educational outcomes of children

Ethical Issue

• Doing the Right Thing:We have the responsibility to do the right thing for our customers, shareholders, communities and one another.• Winning:We have a passion for achieving results and winning—for our customers, our shareholders, our communities and one another.

Ethical Issue• In 2013, Federal Home Loan Banks in

Boston, Chicago and Indianapolis and Triaxx said that Bank of America put its own interest ahead of shareholders. Since Bank of America was offering lines of credit on second mortgages, they largely avoided financial loss.

Ethical Issue• The Justice Department has initiated lawsuits

Bank of America because they lie about asset quality.

The brand has lost its reputation for years to build

Ethical Issue• Exploiting vulnerable customersBetween 1993 and 2003, Bank of America collected $284 million of Social Security funds from customers in order to get bank fees.

Ethical IssueBad employer• Bank of America and Merrill Lynch awarded

its traders and executives $5.2 billion in bonuses, despite receiving a $45 billion taxpayer bailout.

• 11 Merrill Lynch executives and traders were paid more than $10 million each, while nearly 700 were received at least $1 million.

Donation• Service Members & Veterans• Turn Your Miles• Fighting Hunger