P. M. BRIEFING : Bank Acts to Cover Bad Loans
Bank of New England Corp., hurting from the region’s sagging real estate market, announced today it will sharply boost its reserves to cover bad loans and expects to report a “substantial” loss for the year.
The banking company also announced it has reassigned a senior executive overseeing the bank’s real estate group, that it was considering the sale and merger of some operations and that it expected to rescind a stock dividend declared Nov. 27.
Bank of New England, which said it will boost its loan loss reserves to more than $1 billion, already had made provisions for bad loans totaling $207.3 million in the nine months ended Sept. 30.
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