The All State Banker

He was not going to become a banker, but created a bank, which in 1945 turned out to be the largest commercial bank in the world with assets of $5 billion. He changed the meaning of the very concept of "bank", turning an institution for the elite into a financial institution for any person.

Thanks to him, a bridge across the Golden Gate Strait in San Francisco was built, "Gone with the Wind" and Disney's "Snow White and the Seven Dwarfs" were filmed. Turning billions, Amadeo Giannini said that he did not want to become a millionaire. He didn't become one.

Amadeo Pietro Giannini was born on May 6, 1870 in a small hotel in San Jose, California. The hotel with 20 rooms was managed by his father Luigi Giannini, and the money for its purchase was given by his mother's relatives, Virginia Giannini, the owner of a farm in the vicinity of Genoa. Compared to most Italian immigrants, the family lived quite well financially.

When Amadeo was seven years old, his father was killed by a hotel worker - in an argument over one dollar. The mother, who was left with three sons in her arms, soon remarried to farmer Lorenzo Scatenu.

Old Swiss Hotel in San Jose. Amadeo Giannini was born in this building

When Amadeo was 12 years old, the family moved to San Francisco. There, his stepfather started wholesale trade in agricultural products. First he worked for hire, and then founded his own company - L. Scatena & Co. He bought vegetables and fruits brought to the port and then resold them to local stores.

Amadeo's mother wanted her children to get a good education. Amadeo's younger brother, Attilio, succeeded - he graduated from medical college.

Amadeo, although he received good marks at school, was more interested not in his studies, but in his stepfather's business. As a teenager, Amadeo began to help his stepfather in trade. He started from the port, and at the age of 17 he began to travel around the state of California, buying products from local farmers for sale in the city.

At the age of 19, he made a successful deal with oranges (it was in Hollywood, but no one had heard of cinema in those parts at that time). As a reward for success, his stepfather gave him a third of his company's shares. A few years later, they became equal partners - 50% of each share.

In 1892, Amadeo married Clorinda Agnes Cuneo, whose father Joseph Cuneo made a fortune on real estate. Following the example of his father-in-law, Amadeo also invested in real estate. In 1901, these operations brought him $250 per month, which in terms of purchasing power approximately corresponds to the modern $10 thousand. (here and further in the article all figures are given from the book M. and B. James's "The Story of Bank of America: Biography of a Bank" and Felice Bonadio's book "A. P. Giannini. Banker of America").

Amadeo sold his share in his stepfather's company to employees, and he focused on real estate. In the early 1900s, Amadeo Giannini's fortune was about $300 thousand. He bought a two-story mansion "Seven Oaks" in San Mateo, a suburb of San Francisco, for $20 thousand.

His father in law died in 1902 without leaving a will. The deceased's fortune was about half a million dollars (about $18.6 million in terms of modern money). Most of these funds were invested in more than 100 real estate objects. Relatives signed a contract with Amadeo Giannini. He had to manage the funds of the deceased for ten years, providing for the widow and 11 children left without a father. For this, he was entitled to a reward of 25% of the amount by which the capital entrusted to him would increase. For ten years, Amadeo Giannini earned about $37 thousand in this way.

Amadeo also inherited his late father-in-law's place on the board of directors of Columbus Savings & Loan Society.

San Francisco was the largest city on the West Coast of the United States at that time. Both local banks and large European branches operated in the city. But both worked only with the business elite. Foreign ones - with importers and exporters, American - with large manufacturers and traders.

No bank wanted to deal with small customers. They just wouldn't talk to a borrower who needs $100. Such people had to turn to loan sharks and take loans at predatory rates.

Amadeo Pietro (he often pronounced his middle name in the American manner - Peter) Giannini, having come to Columbus, enthusiastically took up a new business for himself. He was just gushing with ideas that, in his opinion, would be profitable for the bank. He tried to convince other directors that the bank should issue more loans, not keep money in safes without doing anything. Especially small loans. The population of San Francisco grew rapidly, business activity grew, and in the long run, the growth in the number of borrowers, even small ones, had to get a return.

He called for increased investment in real estate, he was already well versed in this market.

If the borrower took money as collateral at home, he was obliged to purchase fire insurance. A bank employee, who was also an agent of the insurance company, wrote out this insurance and put the commission in his pocket. Giannini believed that the bank should receive commissions from the insurance company, not his employees.

Columbus Bank operated only in one area - North Beach.

A significant part of the population of the district were Italian immigrants. In San Francisco, North Beach is still called Little Italy. Giannini urged to go beyond the district, look for customers all over the city.

He managed to find like-minded people. He managed to get his stepfather to the board of directors. But he failed to bring his ideas to life. In 1904, he resigned from the board of directors of the bank.

But the story doesn't end there. This is the beginning of it.

Amadeo Pietro Giannini decided to create his own bank. For advice on how to do this, he turned to his old friend, Vice President of American National Bank James Fagan. Giannini called him Giacomo in the Italian manner. They have known each other for a long time. American National Bank had an account for L. Scatena & Co.

The board of directors of the new bank included Giannini's supporters, who resigned with him from Columbus, and several Italian businessmen. James-Giacomo Fagan, who took office, was the only non-Italian. Amadeo Giannini took the post of vice president and general manager of the bank.

Given the national composition of the audience, it is not surprising that the bank was first registered as Italian Bank of California, and then the name was changed to Bank of Italy.

The authorized capital of Bank of Italy was $300 thousand. 3 thousand shares were issued at $100. 11 directors received 100 shares each, making an advance payment of $50 per share. The remaining shares were acquired by 1.6 thousand small shareholders - none of them owned more than ten shares.

The organizers of the new case managed to make a successful real estate deal - to rent the building where Columbus was located. Giannini's former colleagues did not tolerate such humiliation and moved.

On October 17, 1904, the Bank of Italy opened its doors to the first customers. The bank worked with both individuals and legal entities.

On the first day of work, 28 clients put money on a deposit - a total of $8780. Some depositors were relatives of the bank's directors. The amount of deposits was supposed to impress future customers.

By the end of the year, the total amount of funds on deposits was $134 thousand, the total amount of loans issued was $178 thousand, of which $158 thousand was for loans secured by real estate.

At the same time, the bank lent even small sums. The minimum loan amount in other financial institutions was $100. In the Bank of Italy — $25.

An innovation that competitors looked at with disapproval and even contempt was oral advertising. Giannini bypassed Little Italy and persuaded the residents of the district not to keep money under the pillow, but to take it to the bank, put it in a savings account and receive 3.5% per annum.

Giannini also found customers where other banks were not going to work, on farms near San Francisco.

At the end of 1905, the bank's assets exceeded $1 million. The bank's depositors held $387 thousand in savings accounts. Giannini transferred the accounts of the company that managed real estate belonging to the Cuneo family to the bank.

The bank had a convenient location. There was a prison nearby. There were many of the bank's employees. In addition, the constant appearance of people in uniform near the building scared away potential intruders.

In 1906, Vice President Amadeo Giannini began to receive a salary of $200 per month. It was decided to increase the authorized capital of the bank to $500 thousand by distributing 2 thousand new shares. The start of the sale of shares was scheduled for April 21. But it didn't happen. Everything collapsed.

Not just the bank. The City.

On the morning of April 18, 1906, San Francisco was destroyed by an earthquake with a force of 7.7 to 8.3 on the Richter scale, according to various estimates.

Due to the earthquake, fires broke out, which lasted for four days. Some of the houses were set on fire by the owners, as they had insurance against fire, not against an earthquake.

Firefighters couldn't do much - the water supply system was also damaged.

Most of the population of the city, which was about 410 thousand people, was left homeless. Tent towns appeared in the parks and on the beaches, where the fires lived.

About 80% of the city was destroyed, mainly as a result of fires. About 3 thousand people died. The damage from the earthquake was estimated at more than $400 million (approximately corresponds to the modern $14 billion). The overall estimate of the destroyed property that was insured was almost half as low as $235 million (approximately corresponds to the modern $8.2 billion).

The Bank of Italy building was almost not damaged as a result of the earthquake. On April 18, Giannini arrived at the bank at noon. He covered the distance of 17 miles (27.4 km) from his home in San Mateo partly on foot, partly on passing vans. The trains did not run - the railway track was damaged.

When he approached the jar, the fire was already on the same street. The vice president gave an order to stop working and take out the property. Cash was placed in two vans belonging to his stepfather's company, mostly gold coins - for a total amount of $80 thousand. The money was disguised with boxes of oranges, and bank documentation was laid on top. In other, large banks, cash and documents were hidden in huge metal safes. There was no such safe in Bank of Italy. The bank's money was hidden in Giannini's house in San Mateo.

On April 20, Giannini returned to San Francisco to assess the damage. It was huge. The entire business center of the city was destroyed. The Bank of Italy building turned into ruins as a result of the fire. Almost all depositors of the bank lost their jobs and housing.

On April 22, the bank's depositors received a letter that banking operations would be temporarily carried out at the house of Dr. Attilio Giannini (Amadeo's brother) on Van Ness Avenue and on the Washington Street Pier. Dr. Attilio's house was not damaged by fire.

Most large banks resumed work only at the end of May - huge metal safes had to cool down before they could be opened without damaging the contents. Some bankers said that it would be safer to wait even longer - until autumn.

And Bank of Italy began to conduct operations at the end of April. Most of the operations took place on the pier. The board between the two barrels was a counter. A bag of money - a cash register.

In addition to the time factor, Giannini had another advantage over competitors. In many banks, the fire destroyed financial documents. Giannini knew all his clients in person and remembered how much money everyone had in their account.

He personally communicated with all clients. He told each of those who applied for a loan that the city would be reborn from ruins and ashes, it would become more beautiful than before, but only if all the residents did their best to do so. He gave out no more than half of the amount requested by the borrowers, and explained that there were a lot of applications, everything could not be satisfied.

There was a special breed of borrowers who did not need to ask for a loan. Giannini himself offered money to his fellow ship captains - to bring building materials to the city. As a result, Little Italy began to rebuild faster than the rest of San Francisco.

All $80 thousand was distributed, but the money in the bank did not run out. In addition to borrowers, depositors also applied to the Bank of Italy. They understood that it was safer to entrust Giannini with money than to keep it in a tent on the beach.

In early June, the volume of deposits in the Bank of Italy exceeded the volume of loans issued.

At the end of May, the bank moved from the pier to a rented room near the old building. The program to increase capital to $500 thousand was delayed, but it was implemented. Giannini and his stepfather agreed to accept 680 new shares as part of the payment for their land plot worth $125 thousand. At the same time, they got the right to buy it back in the future along with the house built on it at the same price (plus the cost of building a house plus 5% per annum).

A new bank building was built on this site.

By the end of 1906, the assets of Bank of Italy reached $1.9 million, almost doubling in a year. The number of depositors increased from 1023 to 2644. The total amount of deposits was $1.355 million.

In March 1907, Amadeo Giannini decided to rest and went on a trip to the East Coast. He visited Chicago, Philadelphia, New York. From conversations with colleagues in these cities, Giannini realized that a crisis was looming.

Banks were experiencing a cash shortage, due, in particular, to the fact that insurance companies had to pay huge amounts of bills due to the earthquake and fire in San Francisco.

In May, he returned home and began to prepare for difficult times. The preparation took place in three directions.

1. reduction in lending (the mortgage rate was increased from 6% to 7% per annum, consumer loans continued to be issued at 6%).

2. an increase in the bank's gold reserves. Giannini instructed the cashiers to give out money in paper bills, unless the client specifically asks for gold coins.

3. a campaign to attract new deposits.

On August 1, 1907, the Bank of Italy opened a branch outside Little Italy - in the Mission area.

By that time, the banking crisis was already marching around the planet. In April, a bubble of land real estate burst in Egypt. This led to the mass withdrawal of money from banks by depositors and the collapse of a large bank Cassa di Sconto. Following Egypt, banking panic struck Japan, Germany, Chile. In October, it was the turn of the United States.

On October 30, the crisis came to San Francisco - California Safe Deposit & Trust Company collapsed. Bank holidays were announced in the state, but banks continued to work. However, many of them have changed the rules of work. Many, but not Bank of Italy.

Giannini ordered to place cages with bags with gold coins in the bank room. This spectacle was supposed to create a sense of confidence in customers.

Bank of Italy issued gold at the first request of the depositor, while most other banks recalled the old rule according to which the client must first, 10-90 days as the bank, notify of his desire to withdraw an amount over $100.

Despite the imposed restrictions, other banks lost depositors, the volume of deposits placed decreased. Bank of Italy ended the second consecutive difficult year, increasing the size of assets to $2.2 million. $300 thousand was attracted to deposits for the year.

The following year after the panic, the banking community was actively discussing the issue of what measures should be taken to prevent this from happening again.

One of the problems was that commercial banks were forbidden to operate outside their state. And in some states - even outside their district. There was a so-called rule of protection of the local headquarters. If there was a local bank in a city with a population of less than 50 thousand people, banks from other cities of the state could not open their branches in it.

As a result, tens of thousands of small banks operated in the country. In difficult times for the economy, this disunity harmed everyone. At that time, Canada had a system of banks with branches across the country, which had demonstrated its resilience during banking panics.

Giannini went on a trip to Canada to learn best practices. He saw that even in small towns there were branches of banks, the main structures of which were located on another coast. Operations that were inaccessible to customers of thousands of local banks in the United States were carried out in these branches.

At the beginning of 1909, Giannini's salary doubled to $400 per month. The authorized capital of the bank in the same year was increased to $750 thousand.

On July 1, 1909, a new bank law came into force in California. According to this law, the banking system of California was to be supervised by the state bank governor appointed by the governor.

The law distinguished three types of banks - commercial, savings and trust (dealing with property management and other services on behalf and in the interests of clients as its trustee). If the bank is going to operate in several directions, the assets and accounts of the relevant departments should be divided.

The capital of Bank of Italy was divided in accordance with the areas of activity - $500 thousand was received by the commercial department working with legal entities, and $250 thousand - by the savings department serving individuals.

Giannini took advantage of the provision of the new law, according to which the branches of the bank could not be opened without the permission of the state bank governor, after he was convinced that the company would benefit from the appearance of this branch. In addition, the opening of each branch was to be accompanied by an increase in the bank's fixed capital by $25 thousand.

The first branch of Bank of Italy appeared in San Jose. This was done by buying Commercial and Savings Bank of San Jose, which is experiencing financial difficulties.

However, the law prohibited the purchase of shares by one bank of another. But there is a workaround. The directors of Bank of Italy, acting as individuals, acquired a controlling stake in Commercial and Savings Bank of San Jose.

Bank of Italy acquired most of the assets of the troubled bank. Unlike shares, it was not forbidden to buy assets. After that, the merger of the two structures was announced.

On January 1, 1910, Commercial and Savings Bank of San Jose became a branch of Bank of Italy in San Jose.

Brothers Giannini and Hollywood

The first to start providing loans to a new, rapidly developing business sector - cinema - Amadeo's brother, Attilio Giannini, who sayed goodbye to medical practice and started working in his brother's bank. Following his brother, he fell in love with cinema and Amadeo.

The first "film credit" was issued in 1919 - $50 thousand was received by the Famous Players-Lasky company, which made silent films.

In 1921, Bank of Italy financed the filming of the film "Baby", Charlie Chaplin's first full-length film, by issuing a loan of $250 thousand. The film collected $5.45 million at the box office, becoming the main hit of the year.

In 1923, Cecil DeMille received a loan of $200,000 for the filming of the film "The Ten Commandments" (1923).

Bank of Italy participated in financing the creation of the Columbia Pictures film studio.

In 1930, Bank of America approved a $3 million loan to producers Darryl Zanuk and Joseph Schenk to create a new film company Twentieth Century Pictures (after merging in 1935 with Fox Film - Twentieth Century Fox).

Bank of America lent David Selznick's films - "Gone with the Wind", "The Tale of Two Cities", "A Star is Born", "The Prisoner of the Fortress of Zend" and "The Adventures of Tom Sawyer". Samuel Goldwin took loans from the bank for the filming of the films "Kid from Spain", "Wuthering Heights" and "Goldwin's Madness".

Walt Disney received funding from the bank for the production of his cartoons, starting with "Steamboat Willie" and "Three Piglets". In 1935, he received a record loan (according to various sources, from $1.5 million to $1.95 million) for the first full-length cartoon "Snow White and the Seven Dwarfs". To reach zero, the cartoon had to collect about $3 million at the box office. "Snow White" became a sensation, the highest-grossing cartoon in history and held this title for 55 years. The fees in the first season of the rental amounted to $7.866 million. For the entire time of the show, taking into account the re-releases, the cartoon collected $418 million. After the success of "Snow White", three more full-length cartoons were shot with Bank of America - "Fantasy", "Pinocchio" and "Dumbo".

From 1936 to 1944, Bank of America invested $136 million in the film industry.

Amadeo Giannini with Jackie Coogan, who played the role of Baby in Charlie Chaplin's film "Baby", financed by a loan of the Bank of Italy

Following the first purchase in 1910, two banks in San Francisco and a bank in San Mateo, near Giannini's house, were purchased. At the end of 1912, the assets of Bank of Italy exceeded $11 million. In 1913, two more banks were bought in Los Angeles.

California's industry and agriculture, which were booming at that time, contributed to the growth of the banking sector. The rapid increase in land prices in agricultural areas during the First World War led to the fact that the assessment of land pledged by the bank was two to three times higher than the amount of loans issued. New branches were opened throughout California.

In 1918, the Bank of Italy was the fourth largest bank in California in terms of assets. At the end of 1919 - the second in the state, his assets reached $137.9 million. In terms of the number of depositors - 189,511 people, the bank was the first in the country.

At the same time, Amadeo Giannini, by that time already the first vice-president of the bank, received a salary of $9 thousand per year. Some of the bank's top managers had a higher salary. In 1919, he became president of the Bank of Italy.

Amadeo Giannini constantly put forward and tested new ideas in practice, mastering new areas of activity and new market niches.

Bank of Italy issued loans to livestock farmers at the rate of $25-30 per cow at the rate of 6% per annum.

The bank has established an international department that collects and analyzes information on the market situation in other countries, transportation, duties and customs regulations and provides it to exporters and importers in California.

The bank began to accept deposits from schoolchildren. Bank of Italy was not the first to do this, but became the first in the number of young clients. In 1911, the amount of such deposits in the bank was slightly more than $90 thousand, at the end of 1920 - $732 thousand.

The bank received practically no benefit from this type of activity, except for customer loyalty. More than half of young depositors left money in the account after reaching the age of majority.

In June 1921, a bank for women was established in the structure of the Bank of Italy - the only one in the United States. It was located on the top floor of the bank's headquarters in San Francisco. All the staff consisted of women.

In the beautifully furnished room, brochures promoting the economic independence of women were laid out on the tables.

By the end of 1923, the bank had 10 thousand depositors who held $1.5 million in their accounts.

An Italian department has appeared in the Bank of Italy. The mission of his employees was to make all Italians living in California customers of the bank. In a special cabinet in the department, there was a special cabinet with cards with the names and addresses of all Italians in the state, sorted by districts. Employees of the department were sent to potential customers to convince them to take a loan, put money in a savings account, buy shares of "their", "Italian" bank.

By the end of the 1920s, 40% of the bank's more than 100,000 shareholders were Italians, mostly residents of California.

Following the Italian, other similar departments appeared in the Bank of Italy - Yugoslav, Russian, Portuguese, Greek, Mexican, Spanish, Chinese.

Giannini took care of his employees. The bank staff received bonuses for Christmas in the amount of half of the monthly salary. In addition, bonuses were paid for length of service, bulletins and health insurance were paid. An employee with more than 20 years of experience could retire at the age of 65, which was paid by the bank. If he died, his widow received half of his pension for life. However, only if the age difference between the spouses did not exceed ten years. If it was more, the percentage decreased.

A logical continuation of the expansion was going beyond the state of California. Leaders of the Italian community of New York interested Giannini in the possibility of acquiring a bank in the city. His clients were supposed to be representatives of all immigrant communities in New York.

In 1919, the East River National Bank was bought. The purchase was made to Bancitaly, a holding company registered in New York State. The bet on a motley immigrant public turned out to be correct. In the year after the purchase, the volume of deposits in the bank increased from $3.5 million to $12.5 million.

Then Bancitaly acquired a bank that was not only Italian in name, but was also located in Italy - Banca dell' Italia Meridionale with its branches. Later, the name of the bank was changed to Banca d'America e d'Italia.

In the 1920s, many American banks began to copy Giannini's strategy, spreading branch networks across the country. But he also continued to open branch after branch.

In 1924, Amadeo Giannini announced that he was resigning as president of the Bank of Italy. Having refused his salary, he continued to deal with the bank's affairs.

In general, the rosy picture was slightly spoiled by the fact that the growth of the branch network depended on the relationship of the California bank governor to the bank Giannini. In 1927, Giannini supported Republican Clement Young in the gubernatorial election in the hope that he would appoint someone more compliant than Franklin Johnson, who did not like Giannini very much, as bank governor. That's what happened.

In February 1927, the Bank of Italy had 276 branches in 199 settlements in California. The bank's assets amounted to $750 million, which made it the third largest bank in the country after National City and Chase in New York. Under the new state bank governor William Wood, the Bank of Italy bought almost 100 new banks by the end of 1927.

By creating a California-wide banking network, Amadeo Giannini undertook the implementation of the next plan - to repeat success throughout the country.

Giannini did not receive a salary either at Bank of Italy or at Bancitaly. But in April 1926, the board of directors of Bancitaly, in recognition of his outstanding services, decided to pay him compensation for his work - 5% of the corporation's profit, but not less than $100 thousand per year. In 1927, Bancitaly's net profit was about $30 million, therefore, Giannini was owed about $1.5 million.

He refused this money. He said that he already has half a million and this is "all a person needs".

He asked to donate one and a half million in compensation to charity. The money was used to establish a school of agricultural research at the University of California at Berkeley and to pay grants to students.

In an interview with San Francisco Examiner, Giannini said:

"I don't want to have more money. If I had all the millions in the world, I wouldn't be able to live better than I do. I love work. What is called the higher light means nothing to me. I've always said that I'll never become a millionaire. Perhaps this will convince skeptics that I am responsible for my words."

In 1925-1928, there were corporate wars in New York's Bank of America. 45% of the shares belonged to Ralph Jonas. A group of shareholders led by bank president Edward Delafield opposed Jonas to accumulate a controlling stake. Delafield was supported by one of the most influential people on Wall Street - John Pierpont Morgan Jr., son of the legendary J. P. Morgan.

Due to disagreements in the top management, the bank was losing money. Jonas decided to give up and sell his shares. Bank of America was exactly what Amadeo Giannini wanted. A serious financial institution, the opportunity to gain a foothold on the East Coast, and even the name of the bank corresponded to what Giannini wanted to create. The name was ideal for a bank with branches in all states.

Not wanting complications, Giannini got Morgan's approval for the deal. He, however, put forward conditions Edward Delafield remains president, and Morgan gets the right to veto the appointment of members of the bank's board of directors.

On February 25, 1928, Giannini bought 78 thousand Bank of America shares from Jonas at $7.50 each. After that, he merged Bank of America with his already owned New York banks.

As a result, a bank was created, the assets of which amounted to $406 million.

Bank of America's share price has soared. And not only Bank of America. Professional brokers and non-professional players also madly bought shares of Bancitaly and Bank of Italy, playing for a promotion.

But soon Giannini was waiting for an unpleasant surprise - a message from the board of directors of the Federal Reserve Bank of New York. He was informed that the board of directors opposes holding companies owning shares in New York banks.

Therefore, the shares owned by Bancitaly must be transferred to private shareholders within six months. In case of non-fulfillment of the requirement, the issue will be decided by the management of the Federal Reserve System.

In May-June, the price of all shares on the New York Stock Exchange began to decline. The fall affected the shares of Giannini banks especially hard. Stock speculators began to play on their downgrade.

The stock market downturn lasted about a week, then the market stabilized. Amadeo's son, Mario Giannini, spent about $60 million buying up shares of his father's companies, trying to keep the course. Losses amounted to about $20 million.

Amadeo discussed the situation with his son and colleagues. They came to the point that the three structures have grown too much, which creates difficulties both in managing them and on the stock exchange. Therefore, consolidation is necessary.

Bancitaly, Bank of Italy, Bank of America and their subsidiaries were merged into one giant corporation with a market capitalization of $1.5 billion. Transamerica Corporation was registered in October 1928 in Delaware.

Giannini put forward an ambitious plan to increase the number of Transamerica shareholders from 175 thousand to 500 thousand people by the end of 1930. To do this, even in the smallest American town, the shares of the banking giant had to be sold, sold and sold every day.

After that, Giannini decided to completely subordinate Bank of America to a new corporation, that is, to enter into a direct confrontation with Morgan.

But soon it turned out that there are problems more serious than the Fed and Morgan.

On October 17, 1929, a banquet was held in honor of the 25th anniversary of the Bank of Italy. It was Thursday. On Friday, all shares began to fall on the New York Stock Exchange.

On Monday, the collapse intensified. The situation was getting worse every day.

Giannini tried to keep the Transamerica stock price. He spent more than $68 million from the corporation's capital to buy back more than a million shares. Later he admitted that it was a mistake.

And then came Tuesday, October 29. The most infamous "Black Tuesday" in financial history.

Seeing what was happening on the stock exchange, Giannini stopped and stopped buying shares. Their rate fell from $62 to $32 per piece. Transamerica lost more than $750 million in price.

But after the collapse of the stock exchange, he behaved as if nothing had happened, continuing his path to the goal - the creation of a national banking network. In December, it became known that he bought Oakland Bank and added five branches to the Bank of America network in New York.

In early 1930, the name of the new president of the corporation was announced at the Transamerica shareholders' meeting.

It became Amadeo's son, Mario Giannini.

A new corporate war has begun, Delafield against Mario.

On August 8, 1930, the Transamerica share price fell to $18.

In 1930, the attitude towards Transamerica shares was as follows. In one of the pharmacies in San Francisco, everyone who bought medicines for 5 cents was given one share. In the candy store, promotions were given as a consolation prize to the losers of the game for customers.

On February 2, 1931, Mario resigned. At the meeting of the board of Transamerica, the chairman of the board of the bank Elisha Walker informed those present about the catastrophic financial situation of the corporation and put forward a restructuring plan.

It included the sale of stakes in Bank of America divisions in California, New York and Italy, as well as the sale of controlling stakes in banks located in other states. It was also planned to reduce the amount of dividends, reduce the authorized capital of the bank and reissue securities with the transition to shares without a fixed nominal value.

If this plan were implemented, Amadeo Giannini's idea of creating a nationwide banking network would be buried.

On September 22, 1931, the board of directors of Transamerica voted to approve the Walker plan. Giannini said he would resign if Walker's plan was adopted. The resignation was accepted, the plan was approved.

Giannini didn't give up. He decided to collect the votes of small shareholders to prevent Walker from being re-elected at the annual shareholders' meeting on February 15, 1932. The Associated Transamerica Holders (ATS) was established.

Giannini presented his enemy's plan as an attempt to "steal Transamerica", to sell banks at a knowingly low price.

Shareholders were sent voting cards against Walker's re-election. Meetings of ATS members were held throughout the state.In November 1931, 150,000 out of about 200 thousand small shareholders joined the organization.

Meanwhile, voting cards for Walker were distributed among Transamerica employees. Shareholders complained that representatives of the corporation demand urgent repayment of the loan from them if they did not vote for Walker.

While the two groups were fighting, depositors began to withdraw their money from Bank of America - about $3 million a day.

The vote was won by Giannini supporters. The majority of votes was about three to one.

Amadeo Giannini was elected as the new president of the Bank of America and chairman of the board of directors. In the spring and summer of 1932, Transamerica was purged - all Walker supporters were fired. Those who tried to play for both teams were paid.

The financial situation of the bank was catastrophic. The bank owed $70 million to the Federal Reserve System and $40 million to the Reconstruction Finance Corporation (a new state agency that issued loans to save railways, banks, credit and construction associations and other financial institutions).

Giannini supported President Franklin Delano Roosevelt's New Deal, a program launched in 1933 to overcome the consequences of the Great Depression. In public speeches, Giannini stated that "the hysterical stage of depression is already behind us". Bank agents went from house to house and urged fellow citizens to put money on deposits in order to promote the rapid revival of the national industry.

The symbol of economic recovery was the bank's financing of the construction of the bridge across the Golden Gate Strait. Bank of America purchased securities worth $38 million, at the expense of which the bridge was built.

The success of the deposit attraction campaign was stunning. Every month, the bank had about 27 thousand new depositors. In March 1932, the volume of deposits was about $800 million, by the end of the year it increased by almost $100 million.

The main money to the bank in the 1930s was brought loans with repayment in installments - for stoves, washing machines, vacuum cleaners, refrigerators.

In December 1935, such loans were issued for $22 million, in December 1937 - for $95 million.

After the adoption of the National Housing Law in 1934, the bank began to issue loans to home buyers. By 1938, loans totaling $94 million were issued to 163 thousand borrowers. In 1936, the bank began to issue loans for the purchase of cars in installments at 6% per annum, which forced banks across the country to reduce their rates.

In May 1938, the tax office demanded that Giannini pay taxes on the "compensation" of $1.5 million, which he donated to the University of California, $220 thousand. In response, he sued the tax authorities and won the lawsuit.

In June 1945, Bank of America had 492 branches - three fewer than before the war. However, during 1943-1945, Giannini bought about 60 "independent" banks.

On May 6, 1945, Amadeo Giannini announced that he was resigning as chairman of the board of directors of Bank of America. He also announced that he intended to give more than half of his fortune - about $500 thousand - to the creation of the Bank of America Giannini Foundation. The Foundation was supposed to issue educational grants to bank employees and finance scientific research, primarily in the field of medicine. "I always promised that I wouldn't be a millionaire," he said.

After the war, the bank opened foreign branches - in Manila, Bangkok, Shanghai, Tokyo, Yokohama, Guam.

In 1947, Transamerica controlled 41 banks with 562 branches in California, Washington, Oregon, Arizona and Nevada. Bank of America had about 500 branches in California alone.

The corporation's assets exceeded $7 billion.

On May 6, 1949, Amadeo Giannini celebrated his 79th birthday, and on June 3 he died in his sleep. After his death, the size of his fortune became known - $489,254. He donated $50 thousand to various religious organizations, the rest of the money was transferred to the Bank of America Giannini Foundation.

As of December 2024 Bank of America has a market cap of $350.42 Billion USD. This makes Bank of America the world's 27th most valuable company by market cap