In August 1928, in a somewhat surprising move to the local populace was the announcement that the Lassen Industrial Bank had intentions to sell the bank to Bank of America, formerly known as the Bank of Italy. Jules Alexander, president of Lassen Industrial Bank highlighted some of the positive aspects being part of larger bank, due to its access of larger amount of capital. Bank of America stated there were be almost no change in operations or that of the personnel employed locally.
But there was more to the story, that the public was not aware. Lassen Industrial Bank was a in a financial crisis due to the delinquency on loans to the farmers and ranchers of the Baxter Creek & Tule Irrigation Districts due to the problems associated with Bly Tunnel at Eagle Lake. On December 1, 1928, Bank of America took over the beleaguered bank and with it and infusion of $100,000 to stabilize it.