January 5, 1991 |
Bank of New England Corp. on Friday estimated that it lost up to $450 million in the last three months of 1990, results that analysts said could plunge the bank into insolvency and force a government bailout. The bank said it had not calculated the final figures for the fourth quarter, but it expected heavy losses from bad real estate loans. The announcement scared some depositors. At a bank branch in the town of Lynn, north of Boston, long lines of customers waited to withdraw money.
June 17, 1991 |
The tottering Bank of New England in Boston turned to its sister bank, Connecticut Bank & Trust Co. in Hartford, for billions in emergency loans in late 1989, according to a House Banking Committee report. The newly released report details the events that brought down both the Boston and Hartford banks and their parent company, Bank of New England Corp. last January.
January 10, 1991 |
Federal banking regulators Wednesday defended the $2.3-billion bailout of the Bank of New England and their decision to protect all depositors, saying that the move was necessary because of the severe recession in the Northeast. Regulators on Sunday seized control of the three main banks owned by Bank of New England Corp., which on Monday filed for bankruptcy. The Federal Deposit Insurance Corp. will operate the three banks until they are sold. FDIC Chairman L.
December 27, 1989 |
Walter J. Connolly Jr., chairman and chief executive of the Bank of New England Corp., will resign his CEO position when a replacement is found, the troubled bank said in a statement Tuesday. Asked if this meant Connolly will stay on as chairman, Marcia Ryan, a bank spokeswoman, said only "the word of the release is as it stands." She acknowledged "there is an ambiguity" about the wording regarding Connolly's future position with the bank.