July 26, 1988 |
Mellon Bank Corp. said Monday that it will shift $1 billion in bad loans into a new independent bank to stabilize Mellon's earnings and improve its recently troubled finances. "Last June, we said we'd deal with our problems as aggressively as we could . . . that we were not going to disembowel the company in any form. This step is just a logical extension," said Frank V. Cahouet, chairman of the bank holding company that ranked as the nation's 16th largest at the end of 1987.