Bank of America-Merrill Lynch/gender Bias
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Bank of America-Merrill Lynch/Gender Bias
Bank of America-Merrill Lynch/Gender Bias
After the revolutionary war in 1790 Alexander Hamilton, the Secretary of Treasures initiated a plan for the first bank of the United States. The bank was needed because the government was in debt after the war (Dewey, 1903). Since each stated at the time had its own currency, Hamiltons idea was for the bank to create one currency for all states and to handle the debt from the war. In 1791 in Philadelphia, the United States first bank was opened. The bank offered new businessman commercial loans to initiate new enterprises. Private investors owned eighty percent of the bank while the government only owned twenty percent (Dewey, 1903). The bank was successful in managing the debt of the war as well as creating standardized currency for all states to use. Government politicians felt that the private investors had too much control over the bank and in 1811 refused to sign and renew the charter. In 1812, another war began sending the United States government back into debt. By 1816 the second bank of the United States was created with the same powers and responsibilities as the first (Dewey, 1903). The bank had twenty-nine branches that held extra money for the other banks in the United States. The second bank of the United States also regulated on the branches who appeared to be giving too many loans (Dewey, 1903). President Jackson felt that the bank was becoming too powerful and refused to allow the banks charter to be renewed. After the failure of the first two banks the states reclaimed their authority in the banking industry. Each state had the power to sign charters for new banks. During this period a large number of banks were created which led to the 1837 financial panic. When the Civil War began the government found itself once again in a financial debt (Dewey, 1903). The government needed a way to finance the expenses of the war. In 1863, the National Bank was created with the same principles as the free banking era. In the beginning state banks could collect charters at the state or national level. The banks who chose the national charters were obligated to use the bills that were the government issued and then backed them up with the United State Bonds (Dewey, 1903). Eventually the states charters were phased out leaving the country with one uniformed currency. The National Bank played an important role in the history banking in the United States. Since then every bank in the United States used the same paper bills and coins (Dewey, 1903). Bank of America formerly known as the Bank of Italy was founded by Amadeo Peter Giannini in 1904 in San Francisco, California. Amadeo Giannini created the Bank of Italy to serve the immigrants that were settling in the United States (James & James, 1954). Existing United States banks were discriminatory and denied services to all immigrants except the wealthy. In 1906, an earthquake erupted in San Francisco sending many buildings including many banks up in flames. Many bank owners were unable to open their vaults to save their money, but Giannini was able to save and get the deposits out of the bank and away from the smoldering fire in the city (James & James, 1954). Within a few days of the disaster while other banks were ruined, Giannini was capable to use the rescued money to begin lending to people who wanted to rebuild. In 1928 Amadeo Giannini approached the president and Chairman Orra Monnette of the bank of America Los Angeles about a merger (James & James, 1954). Once the merger was finalized Monnette and Giannini agreed that the bank of America name represented the mission of the new bank they merged together. In 1914 Charles E. Merrill founded and opened Charles E. Merrill & Co. on 7th Wall Street in Manhattan, New York. In 1915 Joined by his friend Edmund C. Lynch, the name of the company was changed to Merrill, Lynch & Company. Making successful investments in its early years, Merrill Lynch brought the small grocery store, safe way turning it into one of the third largest grocery stores in the country (James & James, 1954). During the financial crisis in 2008, Bank of America obtained Merrill Lynch in a fifty-billion dollar deal. Bank of America acquired Merrill Lynch within days of it crumbling saving the company from going bankrupt (James & James, 1954). As one of the largest brokerage firms on Wall Street, since the 1970s Merrill Lynch has paid approximately a half a billion dollars to settle discrimination suits filed by their employees. The majority of discrimination suits filed against Merrill Lynch were of women who were treated unfairly or discriminated against as brokers. This paper will discuss some of the settlements filed against Merrill Lynch/Bank of America because of gender bias (James & James, 1954).
Research that Lead to Gender Bias Cases
There is currently extraordinary enthusiasms toward a territory regarding differences of gender and that has as of lately became known to the world of business as Behavioral Finance. This field is concentrated to process of mental elements for prompt basic financing practices. In past examinations regarding gender equality and contrasts in venture methods in the world of finance and has indicated two paramount contrasts: female speculators seem to have both more hazard opposed and to have less certainty in their financing choices than male moguls in proportionate circumstances. Judy Lau, once president of the Institute of Certified Financial Planners, stated that her objective as President might have been “to verify that the mental part of this business gets more excellent stress” (as cited by Louise, 2003). Notwithstanding, considering the current level of enthusiasm toward this territory, a very limited number of studies have kept tabs these types of elements that may prompt sexual orientation contrasts in venture methods. Although former exploration focuses to solid sex contrasts in the regions of venture danger taking and speculation trust, a small number of attempts have been attempted on keeping tabs on the efforts as to why these contrasts happen.
As of late, the money related world is viewed as a sensational build in the amount of ladies in expert financing status, for example, institutional gurus and securities experts. According to Kover (1999), female moguls represent more of the particular contributing which happens – by one gauge, the vast majority of ladies will be responsible for their familys funds sooner or later. Given the much higher vicinity of ladies in both expert and particular contributing, it is basic to comprehend gender bias in