BankBoston
Encyclopedia
BankBoston was a bank based in Boston, Massachusetts, which was created by the 1996 merger of Bank of Boston and BayBank. Bank of Boston had a venerable history dating back to 1784, but the merged BankBoston was short-lived, being acquired by Fleet Bank in 1999. In 2005, FleetBoston was purchased by, and merged into, Bank of America
of Charlotte, North Carolina
.
After the sale of its Latin American branches in 2006, BankBoston currently exists solely as a subsidiary private bank owned by Bank of America.
and among its early account holders were such notable figures as Paul Revere
, Samuel Adams
, John Hancock
and Henry Knox
. The bank's founders were largely made up of merchants who wanted to use a U.S., rather than British bank to send money abroad. The bank was the only bank in the city of Boston until the Union Bank (later the Bank of New England
was founded in 1792.
In 1786, the Massachusetts Bank financed the first U.S. trade mission to China, and in 1791, it financed the first voyage of an American ship to Argentina
, establishing what would become a long-standing presence in Latin America
. Bank of Boston would later become the largest foreign bank in several major Latin American cities.
In 1864, The Massachusetts Bank was renamed the Massachusetts National Bank.
On December 24, 1927, Bank of Boston's headquarters in Buenos Aires, Argentina, were blown up by the Italian anarchist Severino Di Giovanni
, in the frame of the international campaign supporting Sacco and Vanzetti
.
Despite the Wall Street Crash of 1929
, the First National Bank of Boston continued to grow in 1929 purchasing the Old Colony Trust Company. However, following the passage of the Glass–Steagall Act in 1933, which prohibited commercial banks from engaging in investment banking and securities dealing, First National Bank of Boston was forced to divest its investment banking
arm, the First Boston Corporation.
In 1970 the Bank of Boston reorganized under a new holding company, First National Boston Corporation and began a series of acquisitions of regional banks through the 1970s and 1980s. In 1982, the bank renamed itself Bank of Boston. In 1985 Bank of Boston acquired Connecticut-based Colonial Bancorp and in 1987 acquired BankVermont Corporation.
to Fleet Bank and its attempted merger with Shawmut Bank collapsed in early 1992. In 1994, Bank of Boston entered into discussions with Fleet about a potential merger but ultimately Fleet chose to merge with Shawmut in 1995.
In 1995, Bank of Boston announced a merger with BayBank, another local financial institution founded as Baystate Corporation in 1944 but renamed BayBank in 1976. Although still smaller than its failed takeover targets earlier in the decade, BayBank had a strong retail banking operation, with 205 branches and a over a thousand ATM
s. Following the merger, the combined Bank of Boston did regain the title as the largest bank in the city of Boston from its rival Fleet Bank although Fleet was still the larger bank overall. With the addition of BayBank's $11 billion of assets, the combined bank had total assets of over $62 billion at the end of 1996.
The combined bank, rebranded BankBoston in 1996, was a major financial institution both domestically and internationally, due in part to the Latin American holdings of Bank of Boston, where the old name was still used. Nonetheless, it would soon be subsumed by one of the many U.S. bank mergers that proliferated in the 1990s.
In August 1998 BankBoston acquired Robertson Stephens & Co. from BankAmerica Corporation for approximately $800 million. The transaction represented the second largest acquisition in company history, after the purchase of BayBank.
The combination of Fleet and BankBoston resulted in what was the eighth largest bank in the United States at the time, with assets of over $190 billion. Between the acquisitions by Fleet and BankBoston, the combined bank had consumed eight of the ten largest banks in New England at the start of the 1990s.
The merged entity, FleetBoston Financial
, adopted BankBoston's former Boston headquarters as its own. The bank had branches throughout New England
and the mid-Atlantic states. In 2000, FleetBoston acquired Summit Bancorp
of Princeton
, New Jersey
. The acquisition of Summit, New Jersey's largest remaining bank at the time, vaulted FleetBoston into the #1 market-share position in the state of New Jersey and provided critical mass in the Philadelphia
metro area.
, which was looking to expand its East Coast presence. Bank of America chose to unload Bank of Boston's historic Latin American assets (still branded as BankBoston), in order to focus on becoming one of the largest U.S. domestic banks.
In 2006, Bank of America
sold all BankBoston's Brazilian assets to Brazilian bank Banco Itaú
, in exchange for Itaú shares. The BankBoston name and trademarks were not part of the transaction and, as part of the sale agreement, cannot be used by Bank of America.
In August 2006, Itaú purchased BankBoston assets in Chile and Uruguay. Operations in these countries continued to use the BankBoston brand until Banco Itau completed its takeover in Chile on February 27, 2007., and in Uruguay on March 23.
In December 2006, Argentina's central bank approved Bank of America's sale of BankBoston Argentina to South Africa's Standard Bank. With the finalization of the sale on April 3, 2007, the BankBoston brand ceased to exist in any branches.
BankBoston currently exists solely as an international private bank, a subsidiary owned by Bank of America.
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
of Charlotte, North Carolina
Charlotte, North Carolina
Charlotte is the largest city in the U.S. state of North Carolina and the seat of Mecklenburg County. In 2010, Charlotte's population according to the US Census Bureau was 731,424, making it the 17th largest city in the United States based on population. The Charlotte metropolitan area had a 2009...
.
After the sale of its Latin American branches in 2006, BankBoston currently exists solely as a subsidiary private bank owned by Bank of America.
History
The history of BankBoston represents the combination of dozens of banks throughout the New England region acquired over the course of more than two centuries. Among its notable predecessors were the Massachusetts Bank, the First National Bank of Boston, the Old Colony Trust Company and BayBank.The Massachusetts Bank
Bank of Boston traced its roots back to The Massachusetts Bank founded in 1784. The Massachusetts Bank was the first federally chartered joint-stock owned bank in the United States and only the second bank to receive a charter in the United States. The bank's charter was signed by John HancockJohn Hancock
John Hancock was a merchant, statesman, and prominent Patriot of the American Revolution. He served as president of the Second Continental Congress and was the first and third Governor of the Commonwealth of Massachusetts...
and among its early account holders were such notable figures as Paul Revere
Paul Revere
Paul Revere was an American silversmith and a patriot in the American Revolution. He is most famous for alerting Colonial militia of approaching British forces before the battles of Lexington and Concord, as dramatized in Henry Wadsworth Longfellow's poem, Paul Revere's Ride...
, Samuel Adams
Samuel Adams
Samuel Adams was an American statesman, political philosopher, and one of the Founding Fathers of the United States. As a politician in colonial Massachusetts, Adams was a leader of the movement that became the American Revolution, and was one of the architects of the principles of American...
, John Hancock
John Hancock
John Hancock was a merchant, statesman, and prominent Patriot of the American Revolution. He served as president of the Second Continental Congress and was the first and third Governor of the Commonwealth of Massachusetts...
and Henry Knox
Henry Knox
Henry Knox was a military officer of the Continental Army and later the United States Army, and also served as the first United States Secretary of War....
. The bank's founders were largely made up of merchants who wanted to use a U.S., rather than British bank to send money abroad. The bank was the only bank in the city of Boston until the Union Bank (later the Bank of New England
Bank of New England
The Bank of New England Corporation was a regional banking institution based in Boston, Massachusetts, which was seized by the Federal Deposit Insurance Corporation in 1991 as a result of heavy losses in its loan portfolio and was placed into Chapter 7 liquidation...
was founded in 1792.
In 1786, the Massachusetts Bank financed the first U.S. trade mission to China, and in 1791, it financed the first voyage of an American ship to Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
, establishing what would become a long-standing presence in Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
. Bank of Boston would later become the largest foreign bank in several major Latin American cities.
In 1864, The Massachusetts Bank was renamed the Massachusetts National Bank.
First National Bank of Boston
In 1903, The Massachusetts Bank merged with The First National Bank of Boston amidst a wave of consolidation in the banking industry at the turn of the century. First National had been founded in 1859 as Safety Fund Bank, changing its name in 1864 when it joined the national bank system. After a year operating as The Massachusetts First National Bank of Boston, the combined firm dropped the usage of "Massachusetts" in the name.On December 24, 1927, Bank of Boston's headquarters in Buenos Aires, Argentina, were blown up by the Italian anarchist Severino Di Giovanni
Severino Di Giovanni
Severino Di Giovanni , was an Italian anarchist who immigrated to Argentina, where he became the best-known anarchist figure in that country for his campaign of violence in support of Sacco and Vanzetti and antifascism.- Italy :Di Giovanni was born on March 17, 1901, in the town of Chieti, in the...
, in the frame of the international campaign supporting Sacco and Vanzetti
Sacco and Vanzetti
Ferdinando Nicola Sacco and Bartolomeo Vanzetti were anarchists who were convicted of murdering two men during a 1920 armed robbery in South Braintree, Massachusetts, United States...
.
Despite the Wall Street Crash of 1929
Wall Street Crash of 1929
The Wall Street Crash of 1929 , also known as the Great Crash, and the Stock Market Crash of 1929, was the most devastating stock market crash in the history of the United States, taking into consideration the full extent and duration of its fallout...
, the First National Bank of Boston continued to grow in 1929 purchasing the Old Colony Trust Company. However, following the passage of the Glass–Steagall Act in 1933, which prohibited commercial banks from engaging in investment banking and securities dealing, First National Bank of Boston was forced to divest its investment banking
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
arm, the First Boston Corporation.
In 1970 the Bank of Boston reorganized under a new holding company, First National Boston Corporation and began a series of acquisitions of regional banks through the 1970s and 1980s. In 1982, the bank renamed itself Bank of Boston. In 1985 Bank of Boston acquired Connecticut-based Colonial Bancorp and in 1987 acquired BankVermont Corporation.
BankBoston
By the 1990s, Bank of Boston was looking to make another large acquisition, hoping to avert its own acquisition by a much larger player. However, the bank lost the bidding in 1991 for the failed Bank of New EnglandBank of New England
The Bank of New England Corporation was a regional banking institution based in Boston, Massachusetts, which was seized by the Federal Deposit Insurance Corporation in 1991 as a result of heavy losses in its loan portfolio and was placed into Chapter 7 liquidation...
to Fleet Bank and its attempted merger with Shawmut Bank collapsed in early 1992. In 1994, Bank of Boston entered into discussions with Fleet about a potential merger but ultimately Fleet chose to merge with Shawmut in 1995.
In 1995, Bank of Boston announced a merger with BayBank, another local financial institution founded as Baystate Corporation in 1944 but renamed BayBank in 1976. Although still smaller than its failed takeover targets earlier in the decade, BayBank had a strong retail banking operation, with 205 branches and a over a thousand ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
s. Following the merger, the combined Bank of Boston did regain the title as the largest bank in the city of Boston from its rival Fleet Bank although Fleet was still the larger bank overall. With the addition of BayBank's $11 billion of assets, the combined bank had total assets of over $62 billion at the end of 1996.
The combined bank, rebranded BankBoston in 1996, was a major financial institution both domestically and internationally, due in part to the Latin American holdings of Bank of Boston, where the old name was still used. Nonetheless, it would soon be subsumed by one of the many U.S. bank mergers that proliferated in the 1990s.
In August 1998 BankBoston acquired Robertson Stephens & Co. from BankAmerica Corporation for approximately $800 million. The transaction represented the second largest acquisition in company history, after the purchase of BayBank.
Merger with Fleet
Boston-based Fleet Bank (originally Providence Bank, founded in Rhode Island in 1791) acquired BankBoston in 1999, on the heels of acquiring Shawmut Bank just a few years earlier. Fleet now dominated the New England market, yet saw the value in maintaining the old Bank of Boston brand in Latin America.The combination of Fleet and BankBoston resulted in what was the eighth largest bank in the United States at the time, with assets of over $190 billion. Between the acquisitions by Fleet and BankBoston, the combined bank had consumed eight of the ten largest banks in New England at the start of the 1990s.
The merged entity, FleetBoston Financial
FleetBoston Financial
FleetBoston Financial was a Boston, Massachusetts–based bank created in 1999 by the merger of Fleet Financial Group and BankBoston. In 2004 it merged with Bank of America; all of its banks and branches were given the Bank of America logo.-History:...
, adopted BankBoston's former Boston headquarters as its own. The bank had branches throughout New England
New England
New England is a region in the northeastern corner of the United States consisting of the six states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut...
and the mid-Atlantic states. In 2000, FleetBoston acquired Summit Bancorp
Summit Bancorp
Summit Bancorp was a Princeton, New Jersey based bank, but also had offices in Summit, New Jersey.The Summit company slowly began expanding in the 1990s, acquiring many regional banks in northern and central and New Jersey. Then, in 1996, the Summit was bought out by Princeton-based rival United...
of Princeton
Princeton, New Jersey
Princeton is a community located in Mercer County, New Jersey, United States. It is best known as the location of Princeton University, which has been sited in the community since 1756...
, New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
. The acquisition of Summit, New Jersey's largest remaining bank at the time, vaulted FleetBoston into the #1 market-share position in the state of New Jersey and provided critical mass in the Philadelphia
Philadelphia, Pennsylvania
Philadelphia is the largest city in the Commonwealth of Pennsylvania and the county seat of Philadelphia County, with which it is coterminous. The city is located in the Northeastern United States along the Delaware and Schuylkill rivers. It is the fifth-most-populous city in the United States,...
metro area.
Acquisition by Bank of America
In 2004, FleetBoston in turn was purchased by Bank of AmericaBank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
, which was looking to expand its East Coast presence. Bank of America chose to unload Bank of Boston's historic Latin American assets (still branded as BankBoston), in order to focus on becoming one of the largest U.S. domestic banks.
In 2006, Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
sold all BankBoston's Brazilian assets to Brazilian bank Banco Itaú
Banco Itaú
Itaú Unibanco is a publicly quoted bank with headquarters in São Paulo, Brazil. The bank is the result of the merger of Banco Itaú and Unibanco, which occurred on November 4, 2008 to form Itaú Unibanco Holding S.A, the largest financial conglomerate in the Southern Hemisphere and is the 10th...
, in exchange for Itaú shares. The BankBoston name and trademarks were not part of the transaction and, as part of the sale agreement, cannot be used by Bank of America.
In August 2006, Itaú purchased BankBoston assets in Chile and Uruguay. Operations in these countries continued to use the BankBoston brand until Banco Itau completed its takeover in Chile on February 27, 2007., and in Uruguay on March 23.
In December 2006, Argentina's central bank approved Bank of America's sale of BankBoston Argentina to South Africa's Standard Bank. With the finalization of the sale on April 3, 2007, the BankBoston brand ceased to exist in any branches.
BankBoston currently exists solely as an international private bank, a subsidiary owned by Bank of America.