Bank of America 2014 Annual Report Download - page 260

258 Bank of America 2014
NOTE 24 Business Segment Information
The Corporation reports the results of its operations through five
business segments: Consumer & Business Banking (CBB),
Consumer Real Estate Services (CRES), Global Wealth & Investment
Management (GWIM), Global Banking and Global Markets, with the
remaining operations recorded in All Other. Effective January 1,
2015, to align the segments with how the Corporation manages
the businesses in 2015, the Corporation changed its basis of
segment presentation as follows: the Home Loans subsegment
within CRES was moved to CBB, and Legacy Assets & Servicing
became a separate segment. Also, a portion of the Business
Banking business, based on the size of the client relationship, was
moved from CBB to Global Banking. Prior periods will be restated
to conform to the new segment alignment.
Consumer & Business Banking
CBB offers a diversified range of credit, banking and investment
products and services to consumers and businesses. CBB product
offerings include traditional savings accounts, money market
savings accounts, CDs and IRAs, noninterest- and interest-bearing
checking accounts, investment accounts and products, as well as
credit and debit cards to consumers and small businesses in the
U.S. Customers and clients have access to a franchise network
that stretches coast to coast through 32 states and the District
of Columbia. The franchise network includes approximately 4,800
banking centers, 15,800 ATMs, nationwide call centers, and online
and mobile platforms. CBB also offers a wide range of lending-
related products and services, integrated working capital
management and treasury solutions to clients through a network
of offices and client relationship teams along with various product
partners to U.S.-based companies generally with annual sales of
$1 million to $50 million.
Consumer Real Estate Services
CRES provides an extensive line of consumer real estate products
and services to customers nationwide. CRES products include
fixed- and adjustable-rate first-lien mortgage loans for home
purchase and refinancing needs, home equity lines of credit
(HELOCs) and home equity loans. First mortgage products are
generally either sold into the secondary mortgage market to
investors, while retaining MSRs and the Bank of America customer
relationships, or are held on the balance sheet in Home Loans or
in All Other for ALM purposes. Newly originated HELOCs and home
equity loans are retained on the CRES balance sheet. CRES
services mortgage loans, including those loans it owns, loans
owned by other business segments and All Other, and loans owned
by outside investors.
The financial results of the on-balance sheet loans are reported
in the segment that owns the loans or in All Other. CRES is not
impacted by the Corporation’s first mortgage production retention
decisions as CRES is compensated for loans held for ALM
purposes on a management accounting basis, with a
corresponding offset recorded in All Other, and for servicing loans
owned by other business segments and All Other.
Global Wealth & Investment Management
GWIM provides comprehensive wealth management solutions to
a broad base of clients from emerging affluent to ultra high net
worth. These services include investment and brokerage services,
estate and financial planning, fiduciary portfolio management,
cash and liability management, and specialty asset management.
GWIM also provides retirement and benefit plan services,
philanthropic management and asset management to individual
and institutional clients.
Global Banking
Global Banking provides a wide range of lending-related products
and services, integrated working capital management and treasury
solutions to clients, and underwriting and advisory services
through the Corporation’s network of offices and client relationship
teams. Global Banking’s lending products and services include
commercial loans, leases, commitment facilities, trade finance,
real estate lending and asset-based lending. Global Banking’s
treasury solutions business includes treasury management,
foreign exchange and short-term investing options. Global Banking
also provides investment banking products to clients such as debt
and equity underwriting and distribution, and merger-related and
other advisory services. The economics of most investment
banking and underwriting activities are shared primarily between
Global Banking and Global Markets based on the activities
performed by each segment. Global Banking clients generally
include middle-market companies, commercial real estate firms,
auto dealerships, not-for-profit companies, large global
corporations, financial institutions and leasing clients.
Global Markets
Global Markets offers sales and trading services, including
research, to institutional clients across fixed-income, credit,
currency, commodity and equity businesses. Global Markets
product coverage includes securities and derivative products in
both the primary and secondary markets. Global Markets provides
market-making, financing, securities clearing, settlement and
custody services globally to institutional investor clients in support
of their investing and trading activities. Global Markets also works
with commercial and corporate clients to provide risk management
products using interest rate, equity, credit, currency and commodity
derivatives, foreign exchange, fixed-income and mortgage-related
products. As a result of market-making activities in these products,
Global Markets may be required to manage risk in a broad range
of financial products including government securities, equity and
equity-linked securities, high-grade and high-yield corporate debt
securities, syndicated loans, MBS, commodities and ABS. In
addition, the economics of most investment banking and
underwriting activities are shared primarily between Global Markets
and Global Banking based on the activities performed by each
segment.