SAN FRANCISCO - The city of San Francisco said last week that it would open for bidding the bulk of its banking business to companies other than its longtime partner, Bank of America Corp.
Seven services, including payroll and account reconciliation, had been managed mostly by Bank of America for close to 75 years. The bank earns about $1 million in fees from the $20 billion in city funds it manages, the city treasurer's office said. Bank of America moved its headquarters to Charlotte, N.C., two years ago after merging with NationsBank.
The bidding would allow Wells Fargo & Co. and Union Bank of California, both of which have much smaller amounts of the city's business, to compete. Several other smaller banks are expected to bid for the business as well.