Which bank acquired BankAmerica in 1998 to form Bank of America?

NationsBank acquired BankAmerica in 1998, and the combined company became Bank of America.

The $62 billion transaction joined Charlotte-based NationsBank with San Francisco-based BankAmerica Corporation. Although NationsBank was the legal survivor and retained its corporate history, executives chose the more recognizable Bank of America name for the merged business. Hugh McColl, NationsBank’s chairman and CEO, led the new organization.

The deal followed BankAmerica’s losses during the 1998 Russian financial crisis and created the largest bank merger in the United States at that time. The combination brought together BankAmerica’s famous California franchise and NationsBank’s rapidly expanding Southern and national network.

A common mix-up is assuming that Bank of America bought NationsBank because the surviving brand was Bank of America. In fact, NationsBank was the acquiring institution; it adopted Bank of America’s better-known name in 1998, with the name change taking effect in 1999. The headquarters remained in Charlotte, reflecting NationsBank’s corporate roots.