FleetBoston Financial
Encyclopedia
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.
-based Fleet Bank began to acquire banks outside Rhode Island
in the 1980s and early 1990s, most notably Norstar Bank of Albany, New York
in 1988 and the Bank of New England
in 1991. In 1988, Fleet merged with Norstar Bancorp to form Fleet/Norstar Financial Group. In 1992, the company was renamed Fleet Financial Group.
Fleet was already one of the three largest banks in New England, together with Shawmut National Corp., and its largest affiliate, Shawmut Bank, N.A. and Bank of Boston, yet state and federal regulators allowed Fleet to merge with Shawmut in 1995, creating a major regional bank that held 30% of all deposits in New England. Fleet was now the largest bank in New England and the ninth largest in the United States. Although old Fleet was the nominal survivor, the merged bank was headqurtered in Boston.
As a result of the merger with Shawmut, Fleet acquired the naming rights
to the newly built Shawmut Center, a sports arena that was to replace the old Boston Garden
. The arena therefore opened as the FleetCenter in 1995. After FleetBoston's sale to Bank of America in 2004, the bank chose to give up its naming rights and an announcement was made on March 3, 2005 that the arena would be renamed TD Banknorth Garden
. It is home to the Boston Celtics
of the National Basketball Association
and the Boston Bruins
of the National Hockey League
.
In 1996 Fleet acquired the US branch network (in New York and New Jersey) of the British National Westminster Bank
.
In 1998 Fleet acquired Quick & Reilly discount brokerage and their deep-discount, online subsidiary Suretrade
.
Fleet's biggest merger came in 1999, when it acquired BankBoston
(which was itself the fruit of a 1996 merger between Bank of Boston and BayBank). The new FleetBoston was the culmination of a series of Boston-area bank mergers that combined several smaller banks into a single large institution. FleetBoston was the seventh-largest bank in the United States
, as measured by assets (US$
197 billion in 2003). It had almost 50,000 employees, over 20 million customers worldwide and revenues of $12 billion per year.
In 2000, it acquired New Jersey-based Summit Bancorp
(which was actually United Jersey Bank (aka UJB Financial), which had acquired Summit back in 1996). The same year, it sold 285 of its New England branches to Sovereign Bank
.
FleetBoston faced a class-action suit over a "bait and switch
" scam where it promised a no-annual fee credit card, only to impose a fee months later. When Bank of America
acquired Fleet in 2004, its overall Customer Satisfaction Index (as measured by the University of Michigan), was dragged down from 74 to 72. Bank of America devoted considerable resources to improving its New England branches' reputation for customer service, establishing customer call centers and hiring more tellers per branch.
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
, Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
–based bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
created in 1999 by the merger of Fleet Financial Group and BankBoston
BankBoston
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 2004 it merged with 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...
; all of its banks and branches were given the Bank of America logo.
History
ProvidenceProvidence, Rhode Island
Providence is the capital and most populous city of Rhode Island and was one of the first cities established in the United States. Located in Providence County, it is the third largest city in the New England region...
-based Fleet Bank began to acquire banks outside Rhode Island
Rhode Island
The state of Rhode Island and Providence Plantations, more commonly referred to as Rhode Island , is a state in the New England region of the United States. It is the smallest U.S. state by area...
in the 1980s and early 1990s, most notably Norstar Bank of Albany, New York
Albany, New York
Albany is the capital city of the U.S. state of New York, the seat of Albany County, and the central city of New York's Capital District. Roughly north of New York City, Albany sits on the west bank of the Hudson River, about south of its confluence with the Mohawk River...
in 1988 and 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...
in 1991. In 1988, Fleet merged with Norstar Bancorp to form Fleet/Norstar Financial Group. In 1992, the company was renamed Fleet Financial Group.
Fleet was already one of the three largest banks in New England, together with Shawmut National Corp., and its largest affiliate, Shawmut Bank, N.A. and Bank of Boston, yet state and federal regulators allowed Fleet to merge with Shawmut in 1995, creating a major regional bank that held 30% of all deposits in New England. Fleet was now the largest bank in New England and the ninth largest in the United States. Although old Fleet was the nominal survivor, the merged bank was headqurtered in Boston.
As a result of the merger with Shawmut, Fleet acquired the naming rights
Naming rights
In the private sector, naming rights are a financial transaction whereby a corporation or other entity purchases the right to name a facility, typically for a defined period of time. For properties like a multi-purpose arena, performing arts venue or an athletic field, the term ranges from three...
to the newly built Shawmut Center, a sports arena that was to replace the old Boston Garden
Boston Garden
The Boston Garden was an arena in Boston, Massachusetts, USA. Designed by boxing promoter Tex Rickard, who also built the third iteration of New York's Madison Square Garden, it opened on November 17, 1928 as "Boston Madison Square Garden" and outlived its original namesake by some 30 years...
. The arena therefore opened as the FleetCenter in 1995. After FleetBoston's sale to Bank of America in 2004, the bank chose to give up its naming rights and an announcement was made on March 3, 2005 that the arena would be renamed TD Banknorth Garden
TD Banknorth Garden
TD Garden is a multi-purpose arena in Boston, Massachusetts. It is named after its sponsor, TD Bank, N.A. and is often simply referred to by local Bostonians as, The Garden, The Fleet Center, or the traditional Boston Garden...
. It is home to the Boston Celtics
Boston Celtics
The Boston Celtics are a National Basketball Association team based in Boston, Massachusetts. They play in the Atlantic Division of the Eastern Conference. Founded in 1946, the team is currently owned by Boston Basketball Partners LLC. The Celtics play their home games at the TD Garden, which...
of the National Basketball Association
National Basketball Association
The National Basketball Association is the pre-eminent men's professional basketball league in North America. It consists of thirty franchised member clubs, of which twenty-nine are located in the United States and one in Canada...
and the Boston Bruins
Boston Bruins
The Boston Bruins are a professional ice hockey team based in Boston, Massachusetts, USA. They are members of the Northeast Division of the Eastern Conference of the National Hockey League . The team has been in existence since 1924, and is the league's third-oldest team and its oldest in the...
of the National Hockey League
National Hockey League
The National Hockey League is an unincorporated not-for-profit association which operates a major professional ice hockey league of 30 franchised member clubs, of which 7 are currently located in Canada and 23 in the United States...
.
In 1996 Fleet acquired the US branch network (in New York and New Jersey) of the British National Westminster Bank
National Westminster Bank
National Westminster Bank Plc, commonly known as NatWest, is the largest retail and commercial bank in the United Kingdom and has been part of The Royal Bank of Scotland Group Plc since 2000. The Royal Bank of Scotland Group is ranked as the second largest bank in the world by assets...
.
In 1998 Fleet acquired Quick & Reilly discount brokerage and their deep-discount, online subsidiary Suretrade
Suretrade
SURETRADE was a Bristol, Rhode Island–based investment firm created in 1997 as one of the first online brokers of the dot com era. Before being absorbed by Fleet Boston's Quick & Reilly in 2001, the Rhode Island firm grew to having over 350,000 customers and nearly $2 billion in...
.
Fleet's biggest merger came in 1999, when it acquired BankBoston
BankBoston
BankBoston was a bank based in Boston, Massachusetts, which was created by the 1996 merger of Bank of Boston and BayBank. Bank of Boston had a venerable history dating back to 1784, but the merged BankBoston was short-lived, being acquired by Fleet Bank in 1999...
(which was itself the fruit of a 1996 merger between Bank of Boston and BayBank). The new FleetBoston was the culmination of a series of Boston-area bank mergers that combined several smaller banks into a single large institution. FleetBoston was the seventh-largest bank in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, as measured by assets (US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
197 billion in 2003). It had almost 50,000 employees, over 20 million customers worldwide and revenues of $12 billion per year.
In 2000, it acquired New Jersey-based 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...
(which was actually United Jersey Bank (aka UJB Financial), which had acquired Summit back in 1996). The same year, it sold 285 of its New England branches to Sovereign Bank
Sovereign Bank
Sovereign Bank is a wholly owned subsidiary of the Spanish Grupo Santander. Based in Boston, Massachusetts, the bank—whose principal market is in the Northeastern United States—has more than $77 billion in assets, operates 723 retail banking offices, over 2,300 ATMs and employs approximately 8,500...
.
FleetBoston faced a class-action suit over a "bait and switch
Bait and switch
Bait-and-switch is a form of fraud, most commonly used in retail sales but also applicable to other contexts. First, customers are "baited" by advertising for a product or service at a low price; second, the customers discover that the advertised good is not available and are "switched" to a...
" scam where it promised a no-annual fee credit card, only to impose a fee months later. When 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...
acquired Fleet in 2004, its overall Customer Satisfaction Index (as measured by the University of Michigan), was dragged down from 74 to 72. Bank of America devoted considerable resources to improving its New England branches' reputation for customer service, establishing customer call centers and hiring more tellers per branch.