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Amedeo Peter Giannini took his first breath in San Jose in 1870. Little did anyone know the impact he would have on the world around him. The son of Italian immigrants, Giannini grew to be a man with huge dreams and an inviting personality.
His initial business foray was selling fruits and vegetables from a horse and cart. However, everyone who knew him saw a much larger future for him.
The next stage of his business career was a marked departure from fruits and vegetables. He started a small bank in the North Beach neighborhood of San Francisco. He was 34 at the time.
He noticed that big banks would only loan money to large, well-financed businesses. Thus, he spawned an idea, which led him to walk the streets, knock on doors, and attempt to convince people their gold and silver coins would be more secure in safe deposit boxes at his bank rather than under mattresses or in drawers at home.
He also promised to pay his customers interest if they deposited their money with his bank, which he called the Bank of Italy.
On April 18, 1906, the San Francisco earthquake struck. Devastating fires swept through the city after the initial earthquake. Most of the large banks were completely destroyed. It was impossible to open the metal vaults for weeks after the fires.
Giannini salvaged roughly $80,000 in gold and silver, which he hid under boxes of fruit and vegetables. This proved somewhat challenging due to the many looters who roamed the streets.
However, he braved the risky neighborhoods, and while other banks were struggling to survive, he set up a small office on the pier in North Beach. While the larger banks were struggling to recover, Giannini offered loans on a handshake, which proved to be well received and a massive boost in customers.
Most other banks charged steep fees and required significant collateral before lending money.
Giannini’s innovative business savvy was the catalyst that helped turn the fledgling bank into a successful business venture that grew and grew.
In 1930, the Bank of Italy changed its name to Bank of America.
Giannini died in 1949. At the time of his death, the bank had more than 500 branches and $6 billion in assets, making it the largest bank in the world.
Not bad for a guy who walked the streets selling fruits and vegetables.
Everything else is just history
Thanks for another great story. I’m a 5th generation San Franciscan so I appreciate the history. I remember my grandmother telling me the story of my great-grandfather (Clarence Payson Jacobs 1862-1914), who worked in the bar at the Tivoli Opera House in SF. When the quake hit, he took the nights’ receipts (which were mostly coins) and hid them under the bar, then hightailed it out of there. In the aftermath of the quake there was a devastating fire and the opera house burned down and my great-grandfather was arrested for stealing the money. He told them to dig among the ruins and they’ll find it, and they did. All’s well that ends well!