B of A in Talks on Bank of New England

BankAmerica Corp. confirmed Monday that it is discussing with federal regulators a possible purchase of certain assets or deposits of the failed Bank of New England Corp.

BankAmerica, which said Bank of New England has an extensive branch system and is strong in retail and business banking, said it hopes to arrange a government-assisted deal.

“National banking is going to be a reality in this decade, perhaps in the next five years. An acquisition in the East would give us a solid base in another important region and put us in a better competitive position when full interstate banking is permitted,” BankAmerica spokesman John Keane said.

The expression of interest by the San Francisco-based parent of Bank of America came as Bank of New England filed for bankruptcy Monday, after most of its operations were seized by regulators and reopened under government supervision.

The bank holding company, stripped of all but one small bank in Florida, filed for Chapter 7 bankruptcy in federal court in Boston. Under Chapter 7, a company is liquidated.

The company’s bank units are expected to continue operating normally under control of the Federal Deposit Insurance Corp., with all deposits insured. The bankruptcy filing will not affect the banks because the parent company no longer owns them.

Industry analysts said BankAmerica and Banc One Corp., a successful consumer bank based in Columbus, Ohio, were the most likely bidders for the bank subsidiaries.