New England banks in $16bn merger
Tuesday 16 March 1999
The merger will create the eighth largest bank in the US and a powerhouse in the country's north-east. However, the process of fusing the two banks will mean the loss of more than 4,500 jobs, partly because of the elimination of overlapping branches. The city of Boston will feel the brunt of the changes.
Analysts, many of whom had been predicting a sale of BankBoston, perhaps to a foreign bank, saw sense in the agreement.
"These banks should definitely do much better on a combined basis than stand-alone," commented Diana Yates of AG Edwards. "They don't have to compete with each other."
Fleet has grown quickly recently, acquiring, for example, the former US retail banking business of National Westminster. It also brings with it the discount brokerage Quick & Reilly.
BankBoston boasts a wide network of retail banks as well as the investment firm, BankBoston Robertson Stephens. It also has a big presence in Argentina and Brazil.
The deal, which is scheduled to close by year-end, is certain to come under the microscope of anti-trust watchdogs in Washington. To appease concern, the two banks are expected to shed some $13bn in customers' deposits.
The early response yesterday on Wall Street was lukewarm. Shares in Fleet were off slightly in morning trading while those in BankBoston were up only slightly. They remained well below the $53 share value put on the bank by the deal.
- 1 Strictly Come Dancing 2014: Gregg Wallace joins line-up as final celebrities revealed
- 2 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 3 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 4 Oil tanker with $100 million cargo goes missing off Texas coast
- 5 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...
£50000 per annum: Harrington Starr: Financial Technical Consultant (C++, C#, F...