Bank Openings

On August 10, Sinclair Bank and Trust Company, Portland, ME commenced banking operations. The new institution is a state-chartered wholesale bank. On September 8, Bankers' Bank Northeast, Glastonbury, CT commenced operations. The new institution is a state-chartered commercial bank and operates as a member of the Federal Reserve System. The Banker's Bank Northeast will offer correspondent services to community banks in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, and New York. (Internal Notice, 9/1, 9/11; SNL Weekly BankFax, 9/14/98)

On October 24, 1997, Bay Loan and Investment Bank, East Greenwich, RI received approval to voluntarily liquidate its banking operations. As part of its liquidation process, Bay Loan and Investment Bank converted to a non-depository institution on January 1, 1998. On June 30, 1998, the bank surrendered its FDIC insurance and certificate. The liquidation process is expected to be completed soon. As of June 30, 1997, Bay Loan and Investment Bank had total deposits of $8.1 million and ranked fifteenth among all commercial banking and thrift organizations in Rhode Island. (Internal Notice, 9/1/98)

On September 21, Charlestown Cooperative Bank, Charlestown, MA merged with Roslindale Cooperative Bank, Boston, MA under the charter of Roslindale Cooperative Bank and under the new title of The Cooperative Bank. As of June 30, 1997, Charlestown Cooperative Bank had total deposits of $16.2 million and ranked 240th among all commercial banking and thrift organizations in Massachusetts. As of the same date, Roslindale Cooperative Bank had total deposits of $78.1 million and ranked 161st. (Internal Notice, 9/23/98)

On September 2, Essex Savings Bank, Essex, CT completed its acquisition of John W. Rafal , Associates, Essex, CT, an investment advisor. As of June 30, 1997, Essex Savings Bank had total deposits of $118.8 million and ranked 57th among all commercial banking and thrift organizations in Connecticut. (SNL Weekly BankFax, 9/8/98)

On September 22, BNY Capital Market, Inc., a subsidiary of Bank of New York Corporation, New York, NY, signed a definitive agreement to acquire Patricof , Co. Capital Corporation, New York, NY, an investment banking firm specializing in mergers and acquisitions, private placements, and special financial advisory services, for an undisclosed amount. The transaction does not include venture capital firm Patricof , Co. Ventures, Inc. (American Bkr., 9/23; SNL Weekly BankFax, 9/28/98)

Royal Bank of Scotland PLC, Edinburgh, Scotland has purchased the remaining 23.5 percent of the Citizens Financial Group, Inc., Providence, RI from Bank of Ireland for $750 million. As of June 30, 1997, Royal Bank of Scotland PLC, 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, New London, CT, had total deposits of $13.2 billion and ranked third among all commercial banking and thrift organizations in New England. (American Bkr., 9/8; N.Y. Times, 9/5/98)

On September 15, Chase Manhattan Mortgage Corporation, Edison, NJ, a subsidiary of Chase Manhattan Corporation, New York, NY, signed an agreement to acquire the Western retail mortgage origination network of Mellon Mortgage Corporation, Houston, TX, a subsidiary of Mellon Bank Corporation, Pittsburgh, PA, for an undisclosed sum. (N.Y. Times, 9/16; SNL Weekly BankFax, 9/21/98)

On September 24, Dolphin Capital Corporation, a wholly owned subsidiary of Atlantic Bank and Trust Company, Boston, MA, entered into an agreement to provide lease financing to customers of CompUSA through a national program announced last week by CompUSA. CompUSA intends to use Dolphin's PowerLease Internet software to further the program. (SNL Weekly BankFax, 9/28/98)

On September 16, State Street Bank and Trust Company, Boston, MA completed the sale of an equipment-lease trust to Chancellor Corporation, Boston, MA for $4.5 million in cash. As of June 30, 1997, State Street Corporation, Boston, MA, parent company of State Street Bank and Trust Company, Boston, MA, had total deposits of $11.1 billion and ranked fourth among all commercial banking and thrift organizations in New England. (SNL Weekly BankFax, 9/21/98)

BankBoston Corporation, Boston, MA announced that it is broadening the capabilities of its London-based Global Trade Team. In addition to serving customers in the United States and Europe, the team plans to leverage BankBoston's extensive Latin American presence to provide trade service and finance to companies between the two continents. The team will also expand its other structured trade finance capabilities, including government export promotion programs, import financing, and pre-shipment financing in Latin America. (American Bkr., 9/10/98)

On September 23, the Federal Reserve Board of Governors (Fed) approved the merger of Citicorp, New York, NY and Travelers Group, Inc., New York, NY. The new banking holding company will be named Citigroup, have assets of $751 billion, and operate in banking, brokerage, and insurance businesses. (American Bkr., 9/24; N.Y. Times, 9/24; Boston Globe, 9/24/98)

On September 18, a bankruptcy trustee for Bank of New England Corporation reached a tentative settlement with the Federal Deposit Insurance Corporation (FDIC) that would pay $140 million to creditors of the failed banking company. Bank of New England was once the second largest banking company in New England and its bankruptcy on January 6, 1991 marked the largest-ever bank failure in New England. The settlement would provide the largest recovery by far for Bank of New England creditors since the company failed. (Boston Globe, 9/19/98)

New Hampshire state regulator has signed a bill allowing nonbanks and credit unions to own and operate ATMs in the state. State law previously had prohibited nondepository institutions and credit unions from owning ATMs because of the potential for fraud. State regulators had cited lack of regulatory oversight in 1997 when they attempted to shut down such ATMs. (SNL Weekly BankFax, 9/8 /98)

The Office of the Comptroller of the Currency (OCC) has released a revised small-bank examiner handbook that places greater emphasis on reviewing a bank's practices rather than its written policies. The handbook provides a three-pronged framework for examination procedures. "Core knowledge" requires examiners to understand the bank's general culture, history and products. "Core assessment" outlines the standards that examiners must evaluated; and "optional procedures" guides examiners in reviewing other activities not covered in the core assessment section. (SNL Weekly BankFax, 9/8/98)

The Federal Reserve Board of Governors (Fed) has amended Regulation E to reduce the period during which a bank may investigate disputed point of sale transactions without providing provisional credit to the consumer. Under the new rule, banks must provide provisional credit within 10 days, half as long as the current requirement. The bank still has 90 days to complete its investigation of the disputed point of sale transaction. The same timetable applies to ATM transactions that are made outside the United States. For accounts that are less than 30 days old, the Fed will give banks 20 days to supply provisional credit and 90 days to investigate disputed charges. (American Bkr., 9/25/98)

On September 15, the Office of Thrift Supervision (OTS) relaxed its restrictions on stock buybacks by recently converted thrifts. Under the new guidelines, thrifts that are trading below their IPO (initial public offering) price may buy back up to fifteen percent of their stock after six months following a conversion. Under the previous standard, thrifts were generally limited to five percent of their stock per year in the second and third years after conversion, with no buybacks during the first year. Thrifts eligible for accelerated buyback must have satisfactory regulatory ratings. Additionally, the repurchase transactions must not raise material safety-and-soundness concerns. (American Bkr., 9/25; SNL Weekly BankFax, 9/28/98)

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.