Report: Bank of Boston Deal Might be in Trouble
BOSTON (AP) _ Federal regulators have reportedly objected to Bank of Boston Corp.’s plans to acquire two New England banks with combined assets of about $5 billion.
The Boston Globe, citing unnamed sources, reported Saturday that the Federal Reserve’s Board of Governors voted this past week not to accept Bank of Boston’s proposed acquisitions of Multibank Financial Corp. and Society for Savings Bancorp.
The governors apparently were concerned about Bank of Boston’s ability to absorb both banks, which have combined assets of about $5 billion, approximately 100 branches and several thousand workers, the newspaper reported.
But the Federal Reserve decision is not final and could be modified.
Federal Reserve officials refused to comment.
Bank of Boston spokeswoman Constance Hubbell said she was not allowed to describe the discussions with regulators.
″This process is naturally complicated and it takes time, but we’re highly respectful of the Fed’s review process,″ she said.
Bank of Boston, which has steadily improved its financial results for more than a year after suffering losses during the recession, announced the proposed mergers within a 10-day span last summer.
The deals were seen as evidence of Bank of Boston’s restored health. Bank of Boston, with approximately $32 billion in assets, is one of the region’s largest banks.
Society for Savings is based in Hartford, Conn.; Multibank is based in Dedham, Mass.