Bank of America 2015 Annual Report Download - page 245

Bank of America 2015 243
NOTE 24 Business Segment Information
The Corporation reports its results of operations through the
following five business segments: Consumer Banking, Global
Wealth & Investment Management (GWIM), Global Banking, Global
Markets and Legacy Assets & Servicing (LAS), with the remaining
operations recorded in All Other.
Consumer Banking
Consumer Banking offers a diversified range of credit, banking and
investment products and services to consumers and small
businesses. Consumer Banking 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, residential mortgages and home equity loans, and direct
and indirect loans to consumers and small businesses in the U.S.
Customers and clients have access to a franchise network that
stretches coast to coast through 33 states and the District of
Columbia. The franchise network includes approximately 4,700
financial centers, 16,000 ATMs, nationwide call centers, and
online and mobile platforms.
Global Wealth & Investment Management
GWIM provides a high-touch client experience through a network
of financial advisors focused on clients with over $250,000 in
total investable assets, including tailored solutions to meet
clients’ needs through a full set of investment management,
brokerage, banking and retirement products. GWIM also provides
comprehensive wealth management solutions targeted to high net
worth and ultra high net worth clients, as well as customized
solutions to meet clients’ wealth structuring, investment
management, trust and banking needs, including specialty asset
management services.
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, leasing clients, and mid-sized
U.S.-based businesses requiring customized and integrated
financial advice and solutions.
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.
Legacy Assets & Servicing
LAS is responsible for mortgage servicing activities related to
residential first mortgage and home equity loans serviced for
others and loans held by the Corporation, including loans that have
been designated as the LAS Portfolios, and manages certain legacy
exposures related to mortgage origination, sales and servicing
activities (e.g., litigation, representations and warranties). LAS
also includes the results of MSR activities, including net hedge
results. Home equity loans are held on the balance sheet of LAS,
and residential mortgage loans are included as part of All Other.
The financial results of the on-balance sheet loans are reported
in the segment that owns the loans or in All Other.
All Other
All Other consists of ALM activities, equity investments, the
international consumer card business, liquidating businesses,
residual expense allocations and other. ALM activities encompass
certain residential mortgages, debt securities, interest rate and
foreign currency risk management activities including the residual
net interest income allocation, the impact of certain allocation
methodologies and accounting hedge ineffectiveness. The results
of certain ALM activities are allocated to the business segments.
Additionally, certain residential mortgage loans that are managed
by LAS are held in All Other.