FOR IMMEDIATE RELEASE
2001-78


Bank of America Corp. Agrees to Commission Order Finding
That it Violated Reporting and Disclosure Requirements

Washington,  DC.  July  30, 2001  --  The  Commission  today
initiated a settled administrative action, in which it found
that  BankAmerica Corp. (now known as Bank of America Corp.)
improperly accounted for a business relationship it had with
D.E.  Shaw  &  Co.,  L.P.  and related  entities,  and  that
BankAmerica  made  misleading filings  with  the  Commission
about the market risks presented by this relationship.  Bank
of  America  Corp. consented to a settlement of this  action
without admitting or denying the Commission's findings.

The Commission found that in March 1997, BankAmerica entered
into  a  business  alliance with D.E. Shaw that  engaged  in
securities and derivatives trading and provided a  means  by
which  BankAmerica could offer derivatives products  to  its
customers.  BankAmerica was entitled to receive, among other
things, certain of the trading profits of the alliance.  The
alliance  was documented as a loan, and BankAmerica  treated
it as a loan for financial reporting and accounting purposes
in  certain filings made with the Commission during 1997 and
1998.  The Commission found that treating the alliance as  a
loan was improper under Generally Accepted
Accounting  Principles.  The alliance had substantially  the
risk  characteristics of an equity investment rather than  a
loan.  The  Commission  found that BankAmerica  should  have
accounted  for  the  alliance using  the  equity  method  of
accounting, and recorded the alliance as an investment.

The activities of the alliance were financed by BankAmerica,
and  subjected  BankAmerica  to market  risks  carrying  the
potential  for  substantial losses.   The  alliance  used  a
significant amount of leverage, which magnified these market
risks  and  the consequent potential for losses.  In  August
1998, the Russian Federation defaulted on certain bonds  and
devalued  its currency, which resulted in worldwide  turmoil
in  the  financial markets.  By no later than  mid-September
1998,  the  alliance  had  suffered  substantial  losses  in
various  of  its securities and derivatives positions  as  a
result  of  this  turmoil  in the  financial  markets.   The
alliance's losses in turn created significant potential that
BankAmerica  would  have  to  recognize  substantial  losses
itself  as  a result of its relationship with the  alliance.
These  losses and risk of loss were not adequately disclosed
in  certain  Forms 10-K, 10-Q and 8-K filed  by  BankAmerica
with the Commission.

More  specifically, the Commission found that,  during  1997
and  1998, BankAmerica described business advantages of  the
alliance  in  filings made on Forms 10-K  and  10-Q.   These
filings,  however,  were deficient  in  that  they  did  not
disclose  the  market  risks to which the  alliance  exposed
BankAmerica and the potential for substantial losses arising
out of those risks.

The Commission further found that, in a filing made with the
Commission  on  Form 8-K on September 15, 1998,  BankAmerica
discussed  certain of the effects on its operations  of  the
worldwide  financial  turmoil  caused  by  the  fiscal   and
monetary  crisis of the Russian Federation.   This  release,
however,  was  inadequate, in that it did not disclose  that
the  alliance had incurred substantial losses that presented
increasing  potential for substantial losses to  BankAmerica
at  the  close of its third quarter on September  30,  1998.
Eventually,  on  October 14, 1998,  Bank  of  America  Corp.
disclosed that it had taken a $372 million "writedown" as of
September  30,  1998, as a result of the activities  of  the
alliance.  Net income reported by Bank of America Corp.  for
the quarter ended September 30, 1998 was $374 million.

Based  on  its findings, the Commission found that  Bank  of
America  Corp.  violated  Section 13(a)  of  the  Securities
Exchange  Act  of 1934 and Rules 13a-1, 13a-11,  13a-13  and
Rule  12b-20  by  making  materially misleading  filings  as
described above.  Bank of America Corp. was ordered to cease
and  desist  from  further violations of  these  provisions.
(Rel. 34-44613, AAE Rel. 1429); File No. 3-10541).

The  persons  to contact with questions are Thomas  Newkirk,
(202) 942-4550 or Leonard W. Wang, (202) 942-4828.