What does the recent news in the market mean for Bank of America and the market in general?
Consumers should be confident in the safety and soundness of the nation’s strongest banks – including Bank of America – as regulators take steps to react to issues affecting the industry.
Bank of America continues to be a strong and powerful company, as evidenced by our recent acquisition of Merrill Lynch. We have leadership positions in three key consumer products (Deposits, Card and Mortgage), an unparalleled distribution network and the leading financial brand.
The Lehman Brothers announcement does not have any impact on Bank of America or Countrywide investment accounts, or on our ability to open or service deposit, card or mortgage accounts.
Bank of America remains very well-positioned to provide the financial safety and stability our customers have come to expect from us.
Customer Q&A:
What does the market volatility mean for the banking industry?
Consumers should continue to be confident in the safety and soundness of the nation’s strongest banks – including Bank of America – as regulators take steps to monitor and react to issues affecting the industry.
Is Bank of America in any financial danger?
Bank of America is the most profitable bank in the United States, and has more capital than any bank in the country. We continue to be a strong and powerful company, as evidenced by our recent acquisition of Merrill Lynch. Bank of America has leadership positions in three key consumer products (Deposits, Card and Mortgage), an unparalleled distribution network and the leading financial brand.
Are any other financial institutions in danger?
We do not speculate about the safety or financial health of any other bank or financial institution.
What does Lehman Brothers’ announcement mean for Bank of America?
This announcement does not have any impact on Bank of America or Countrywide investment accounts, or on our ability to open or service deposit, card or mortgage accounts. We are well-positioned to respond to the impacts of institutions that are facing uncertain times and continue to focus our attention on working with customers to address their financial needs.
What does the Lehman Brothers’ announcement mean for my investment account?
Customers are encouraged to contact a Banc of America financial advisor or client manager to discuss account details.
Are Lehman Brothers customers able to open accounts and access their money at Bank of America?
Yes. Bank of America welcomes customers to use checks drawn on Lehman Brothers accounts, including cashier’s checks, to open new accounts or deposit funds into their existing Bank of America accounts. While we pride ourselves on the speed with which we make funds available to a customer, to help us protect customers and their finances, we do place extended holds on some large deposits, no matter which bank the check is drawn upon. Based on recent events, large deposits drawn on Lehman accounts will be subject to additional scrutiny and are likely to be held for an extended period (up to 11 days). We will continually assess the situation and adjust our policies to best help customers manage their financial well-being, in accordance with the guidance of the federal regulators.
Can you tell me if my accounts with Lehman Brothers are insured?
The FDIC guarantees all traditional types of deposit accounts (checking, savings, trust, money market, CDs) up to $100,000 and IRAs up to $250,000. Investment products (mutual funds, annuities, life insurance policies, stocks and bonds) are not FDIC insured, may lose value, and are not guaranteed. However, most brokerage accounts have insurance through the Securities Investor Protection Corporation (SIPC) that protects customers if the broker fails. We cannot know the extent of the coverage you have, and suggest you contact them directly with specific questions.
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