Bank joins rivals that are rolling out pledges to back investments in U.S. critical industries
By Gina Heeb
Bank of America said it plans to inject $250 billion into an infrastructure push that aims to boost U.S. investments in data centers, energy and critical minerals, the latest big bank to roll out flashy initiatives to enhance national competitiveness.
The second-largest bank in the nation by assets said the initiative would involve lending and investing, as well as capital markets, banking and advisory work all to support a "new wave of infrastructure investment." It said the investments could create tens of thousands of jobs along the way.
Bank of America is joining its peers in launching similar national campaigns that together would put trillions of dollars in capital toward boosting U.S. interests. The endeavors come against a backdrop of an administration that has exerted extraordinary pressure on American companies.
Banks have been under particular scrutiny, including probes into whether they "debanked" clients, a personal matter to President Trump and his family. In January, Trump alleged JPMorgan Chase improperly closed his accounts in a multibillion-dollar lawsuit. The bank has denied it acted illegally in closing the accounts.
On Monday, Morgan Stanley said it would facilitate its own $1.5 trillion infrastructure initiative that will focus on innovation platforms and strategic industries, and infrastructure for the innovation economy. Both Morgan Stanley and Bank of America touted their investments as part of the U.S.'s 250th birthday, celebrated last month.
JPMorgan has announced the bank would use its own capital to invest directly in companies it has defined as critical to national security and economic self-sufficiency, an inherently riskier strategy but also potentially more profitable. It has also rolled out an initiative to support homeownership in the U.S.
Bank of America said its initiative will target key infrastructure behind the artificial-intelligence boom, such as data centers and semiconductors, as well as hardware, chips and equipment. It will also cover conventional and renewable power generation and energy storage, in addition to core infrastructure such as transportation, natural gas, water systems and critical minerals.
It will be measured from the start of this year into the middle of 2027.
Bank of America doesn't intend to focus on equity investments as part of its initiative, but it hasn't taken the option off the table, Karen Fang, the bank's global head of infrastructure and sustainable finance and co-head of global capital solutions, said in an interview.
"I wouldn't say never because for the right projects at the right time, maybe," Fang said.