Bank of New England Sells Mutual Fund Custody Business
BOSTON (AP) _ The Bank of New England Corp. announced an agreement to sell its mutual fund custody business to Investors Bank & Trust Co.
The two companies have completed an agreement on principle to exchange the business for an undisclosed sum, bank officials said Thursday. Bank of New England currently oversees mutual funds valued at $22 billion.
Investor’s Bank, which is 77.3 percent controlled by the Boston-based interstate bank Eaton Vance Corp., already holds custody assets worth an estimated $9 billion.
The Bank of New England lost more than $1 billion last year, primarily due to its aggressive real estate lending policies in an overheated market. In response to its economic woes, bank officials have announced plans to sell off approximately $8 billion in assets.
This week the bank sold its asset-based lending operations located outside New England, valued at about $665 million, to National Bank of Canada. That transaction brought the total value of the bank’s assets sold so far to more than $3.5 billion.