Timeline of Bank of America and Its Epic Deterioration

Bank of America's stock doubled in value in 2012, but investors who purchased shares of the financial behemoth 10 years ago have seen the value of their principal investment deteriorate almost 70%.

The events that led to these crushing blows for common shareholders are well documented, but a single view of the confluence of these events is staggering.

Marked numerically in the preceding graph/timeline, here are 26 events longtime Bank of America shareholders will not soon forget:

1 -- Oct. 27, 2003: B of A agrees to buy FleetBoston Financial for $47 billion. The deal gives the bank a stronger foothold in the Northeast and brings Brian Moynihan, a Fleet Executive VP known for being a shrewd deal-maker, under the B of A umbrella.

2 -- Jan. 18, 2004: B of A reports record 2004 profits of $3.69 per share.

3 -- June 30, 2005: CEO Ken Lewis and team agree to buy the massive credit card issuer MBNA for $35 billion.

4 -- Jan. 23, 2006: The bank posts another record annual profit of $4.15 per share.

5 -- Nov. 6, 2006: B of A acquires U.S. Trust from Charles Schwab for $3.3 billion. The unit ultimately rolls up under Moynihan, head of the bank's wealth-management business.

6 -- Jan. 23, 2007: The bank posts yet another record annual profit of $4.59 per share.

7 -- April 23, 2007: Lewis and team grab more Midwest market share and agree to buy LaSalle Bank for $21 billion.

8 -- Aug. 22, 2007: Bank of America makes $2 billion investment in Countrywide Financial preferred shares.

9 -- Jan. 11, 2008: B of A agrees to buy Countrywide Financial for $4 billion.

10 -- Sept. 15, 2008: Lehman Brothers declares bankruptcy. B of A agrees to buy Merrill Lynch.

11 -- Dec. 5, 2008: Bank of America shareholders approve the Merrill Lynch acquisition.

12 -- Dec. 10, 2008: Moynihan leaves his post atop B of A's investment bank to become general counsel for one month.

13 -- Jan. 16, 2009: B of A reveals Merrill Lynch reported a $15.3 billion loss in the fourth quarter, and the U.S. government invests an additional $20 billion.

14 -- Aug. 3, 2009: Moynihan becomes head of consumer banking.

15 -- Sept. 30, 2009: Lewis announces retirement.

16 -- Dec. 16, 2009: The board of directors taps Moynihan to be the next CEO.

17 -- July 21, 2010: President Obama signs the Dodd-Frank Wall Street Reform and Consumer Protection Act into law.

18 -- June 29, 2011: B of A announces a massive $8.5 billion settlement regarding all legacy Countrywide-issued private-label residential mortgage-backed securities, with Bank of New York Mellon as trustee. This is settlement is currently pending final approval because of some objecting parties, including AIG.

19 -- Aug. 25, 2011: Warren Buffett and Berkshire Hathaway invest $5 billion in B of A.

20 -- Aug. 29, 2011: B of A sells $8.3 billion worth of its shares in China Construction Bank for roughly $3.3 billion.

21 -- Sept. 6, 2011: Moynihan puts his stamp on the bank's structure by revamping his management team. He creates two COO positions (David Darnell and Tom Montag) and boots the heads of consumer banking and global wealth and investment management out the door.

22 -- Nov. 1, 2011: After public outcry, B of A chooses not to implement a monthly debit-card usage fee.

23 -- Sept. 28, 2012: B of A reaches a settlement regarding its acquisition of Merrill Lynch over the alleged misleading statements about the health of Merrill Lynch.

24 -- Jan. 7, 2013: B of A settles with Fannie Mae to resolve agency mortgage repurchase claims on loans originated and sold directly to Fannie Mae through the end of 2008.

25 -- March 14, 2013: B of A receives Fed approval to repurchase up to $5 billion of common shares.

26 -- May 5, 2013: B of A settles with MBIA to resolve certain past representations and warranties claims.

The past 10 years have certainly been a whirlwind for the bank that Carolinas-native Hugh McColl grew into a global powerhouse. While the series of massive acquisitions ultimately crushed shareholders, the actions highlight the strength B of A possessed less than a decade ago. If B of A can return to a even fraction of that strength, shareholders could continue to recoup some of their paper losses. 

Now at the helm for three and half years, the time has come for Brian Moynihan to show investors, employees, and clients that he is the man to led those gains. Based on his involvement in the events I've highlighted, it's clear he has vast operational experience in most of B of A's segments -- now, he just needs to operate.

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Read/Post Comments (3) | Recommend This Article (8)

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 30, 2013, at 9:43 AM, originalbofa wrote:

    I believe the you left something off your timeline - 1998 when NationsBank merged with BofA. That was the beginning of the end.....

  • Report this Comment On June 30, 2013, at 12:38 PM, jgetze wrote:

    I think you forgot March 2009 -- when EVERY US FINANCIAL INSTITUTION became insolvent, thanks to mark to market. This timeline is a laugh, really. There are 50 banks with the same chart.

  • Report this Comment On June 30, 2013, at 1:43 PM, ReAmericaNow wrote:

    To say we need these criminals is laughable, really. Go get refinanced at your local credit unions, get out of the big banks with all of their illegal as Hell play behind closed doors, dump your stock and let them die. I guarantee you we'll all be okay when the chips fall. Those affected will only be the crooked guys, who need middle-Americas money to play with, and who are set up to either use your continued infusions of cash to keep being criminal in style, or who will fall on their faces when either they produce a real, tangible asset or only continue spending without producing. Wall street, is a ponzi scheme in the utmost. Go spend your money in your community, and it'll pay you back. Send your money to these guys, it disappears, some rich guys are a little richer, and we're all the worse for it...

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