BANKING & FINANCE - June 28, 1991

Bank of Boston to Omit Dividend: Bank of Boston Corp. decided to omit the dividend on its common stock in the second quarter--the first time in 116 years it will not issue the payout. The bank also said it expected to report a second-quarter loss, but less than its first-quarter loss of $89 million, or $1.24 a share. The Boston-based banking company, which has been hurt by the troubled New England economy, said omitting the quarterly dividend of 10 cents a share would save cash and raise the value of its shares in the long term. Industry analysts and investors applauded the action, saying the money-saving step pushes the ailing bank a small step closer to recovery.