Shareholder Approval

On October 23, shareholders of Cornerstone Bank, Stamford, CT approved the formation of a new holding company to be named Cornerstone Bancorp, Inc. The reorganization is expected to be completed on December 31. As of June 30, 1998, Cornerstone Bank had total deposits of $120.9 million and ranked 53rd among all commercial banking and thrift organizations in Connecticut. (SNL Weekly BankFax, 10/26/98)

On October 3, United Bank, Bangor, ME purchased three branches from Fleet Bank of Maine, Portland, ME. The branches are located in Greenville, Milo, and Dover-Foxcroft, and have total deposits of approximately $36.0 million. As of June 30, 1998, Camden National Corporation, Camden, ME, parent company of Camden National Bank, Camden, ME and United Bank, had total deposits of $448.1 million and ranked fifth among all commercial banking and thrift organizations in Maine. As of the same date, Fleet Financial Group, Boston, MA, parent company of Fleet Bank of Maine, had total Maine deposits of $1.5 billion and ranked third. On October 17, Citizens Bank of Connecticut, New London, CT purchased four branches from Branford Savings Bank, Branford, CT. The branches are located in Branford, East Haven, and North Branford, and have total deposits of approximately $69.6 million. As of June 30, 1998, Royal Bank of Scotland PLC, Edinburgh, Scotland, parent company of Citizens Bank of Rhode Island, Providence, RI, Citizens Bank of Massachusetts, Boston, MA, Citizens Bank NH, Manchester, NH, and Citizens Bank of Connecticut, had total Connecticut deposits of $1.5 billion and ranked eighth among all commercial banking and thrift organizations in the state. As of the same date, North Fork Bancorporation, Melville, NY, parent company of Branford Savings Bank, had total Connecticut deposits of $156.9 million and ranked 45th. (Internal Notice, 10/5, 10/19; SNL Weekly BankFax, 10/19/98 )

On February 18, 1998, Telephone Worker's Co-operative Bank, Boston, MA changed its title to TeleCom Cooperative Bank. As of June 30, 1998, Telephone Worker's Co-operative Bank had total deposits of $30.7 million and ranked 221st among all commercial banking and thrift organizations in Massachusetts. On October 17, Branford Savings Bank, Branford, CT changed its title to Superior Savings of New England. As of June 30, 1998, North Fork Bancorporation, Melville, NY, parent company of Branford Savings Bank, had total Connecticut deposits of $156.9 million and ranked 45th. (Internal Notice, 10/19/98)

On October 8, Travelers Group, Inc., New York, NY completed its acquisition of Citicorp, New York, NY. The newly merged company has been renamed Citigroup, Inc. (SNL Weekly BankFax, 10/12/98)

Washington Trust Company, Westerly, RI has signed agreements to provide investment management and trust services to customers of Bank Rhode Island, Providence, RI and PierBank, Narragansett, RI. As of June 30, 1998, Washington Trust Bancorp, Westerly, RI, parent company of Washington Trust Company, had total deposits of $532.8 million and ranked fourth among all commercial banking and thrift organizations in Rhode Island. As of the same date, Bank Rhode Island had total deposits of $480.2 million and ranked fifth, and PierBank had total deposits of $47.8 million and ranked 12th. (SNL Weekly BankFax, 10/19/98)

On October 1, Investors Bank , Trust Corporation, Boston, MA, a subsidiary of Investors Financial Services Corporation, Boston, MA, completed its acquisition of the domestic institutional custody business of BankBoston Corporation, Boston, MA. (SNL Weekly BankFax, 10/5/98) (American Bkr., 9/23; SNL Weekly BankFax, 9/28/98)

On October 19, Eastern Bank Corporation, Lynn, MA announced that it entered a joint venture with Beacon Asset Management LLC, Boston, MA. Beacon Asset Management LLC is an investment advisory firm. Terms of the venture were not disclosed. (SNL Weekly BankFax, 10/26/98)

UST Corporation, Boston, MA has bought the trade finance assets of Cambridge Trading Services Corporation, Cambridge, MA. The new subsidiary has been named UST Corporation Cambridge Trade Finance Corporation and it plans to expand export/import-related transactions with small and mid-size companies in New England. As of June 30, 1998, UST Corporation, parent company of USTrust, Boston, MA, and United States Trust Company, Boston, MA, had total deposits of $3.0 billion and ranked tenth among all commercial banking and thrift organizations in New England. (American Bkr., 10/8/98)

On October 16, Mellon Bank Corporation, Pittsburgh, PA completed its acquisition of a majority interest in Newton Investment Management Ltd., London, UK. Newton Investment Management Ltd. is a leading fund manager in United Kingdom. (SNL Weekly BankFax, 10/19/98)

On October 2, Chase Manhattan Corporation, New York, NY completed its acquisition of the global custody business of Morgan Stanley Dean Witter, New York, NY. As of June 30, 1998, Chase Manhattan Corporation had total New England deposits of $1.9 billion and ranked fourteenth among all commercial banking and thrift organizations in New England. (SNL Weekly BankFax, 10/5/98)

Chase Manhattan Corporation, New York, NY, Bankers Trust Corporation, New York, NY, Bank of New York Corporation, New York, NY, BancOne Corporation, Columbus, OH, First Union Corporation, Charlotte, NC, Fleet Financial Group, Boston, MA, Marine Midland Bank, Buffalo, NY, BankAmerica Corporation, San Francisco, CA, Norwest Corporation, Minneapolis, MN, Republic New York Corporation, New York, NY, Citigroup, Inc., New York, NY and European American Bank, New York, NY, as well as several other US banks, have formed Small Value Payments Corporation. The partnership creates an electronic check exchange network that is designed to eliminate physical transportation of the paper check. (SNL Weekly BankFax, 10/19/98)

On October 5, Fleet Financial Group, Boston, MA and Lycos, Inc., Waltham, MA, announced an agreement to release the Lycos Network credit card. Lycos, Inc. is a global Internet navigation and community network company. Fleet will pay Lycos up to $22.5 million, plus ongoing royalties generated from the program. In return, Lycos will market the card program on its network over the duration of the agreement, while consumers will be able to apply for the card through Lycos. (SNL Weekly BankFax, 10/12/98)

The Federal Deposit Insurance Corporation (FDIC) has revised the consumer compliance manual, which was originally released in April 1996 and covers fair lending, CRA, and consumer protection issues. The updated version includes the recently released interagency Community Reinvestment Act guidance, a description of sampling techniques examiners use when reviewing CRA lending, and details on Real Estate Settlement Procedures Act exams. (American Bkr., 10/27/98)

The Federal Deposit Insurance Corporation (FDIC) has compiled a list of 250 service providers and software vendors that have been examined and graded for year-2000 readiness. State nonmember banks may request copies as long as they have a contractual relationship with the vendor. Possible grades for a firm include "satisfactory," "needs improvement," and "unsatisfactory." However, the FDIC did not release a breakdown of the ratings earned by the 250 firms. The list does not constitute legal advice or an endorsement of any company, nor do the reports free a bank from the need to perform its own due diligence reviews. (American Bkr., 10/12/98)

The Office of the Comptroller of the Currency (OCC) has simplified the procedure by which national banks account for fees on international loans. The old rule has been in effect since 1984. Under the new one, which will become effective on January 1st, the accounting system for international loan fees must conform to generally accepted accounting principles (GAAP). (American Bkr., 10/27/98)

On October 15, the Office of the Comptroller of the Currency (OCC), Federal Reserve Board of Governors (Fed), Federal Deposit Insurance Corporation (FDIC), and Office of Thrift Supervision (OTS) published joint interim guidelines establishing minimum year-2000 safety and soundness standards for insured depository institutions. The guidelines complement eight guidance papers previously issued under the auspices of the Federal Financial Institutions Examination Council (FFIEC). The guidelines describe certain essential steps that insured depository institutions must take at the awareness, assessment, renovation, validation, and implementation phases of their efforts to achieve year-2000 readiness. (SNL Weekly BankFax, 10/19/98)

Items in Bank Notes focused on developments affecting banking structure in New England. They were condensed from daily newspapers and press releases from federal and state financial regulatory agencies. Their reproduction does not imply our endorsement of the accuracy, opinions or policies reflected in the subject matter.Items in Bank Notes focused on developments affecting banking structure in New England. They were condensed from daily newspapers and press releases from federal and state financial regulatory agencies. Their reproduction does not imply our endorsement of the accuracy, opinions or policies reflected in the subject matter.