BankBoston

BankBoston was an American banking brand headquartered in Boston, Massachusetts. The brand was created in 1996 through the merger of Bank of Boston and BayBank, combining Bank of Boston's long-established commercial and international banking franchise with BayBank's extensive Massachusetts retail network. Although the BankBoston name was relatively short-lived as the identity of a large U.S. banking group, the institutions behind it had roots extending back to the eighteenth century. One important predecessor was the Massachusetts Bank, founded in 1784. It was the second bank to receive a charter in the United States and the first federally chartered joint-stock bank in the country. Its early customers and associates included prominent figures of the American Revolution, and it financed overseas trade, including an early American commercial mission to China and a voyage to Argentina. These activities helped establish the international orientation that later became a defining characteristic of Bank of Boston and BankBoston. The Massachusetts Bank became the Massachusetts National Bank in 1864. In 1903 it merged with the First National Bank of Boston, whose own history began with the Safety Fund Bank, founded in 1859. The resulting institution became known as the First National Bank of Boston and later Bank of Boston. It expanded through acquisitions in New England, acquired Old Colony Trust Company in 1929, and reorganized under a holding company in 1970. The bank adopted the Bank of Boston name in 1982 and subsequently acquired Colonial Bancorp and BankVermont Corporation. Bank of Boston entered the 1990s seeking greater scale in a rapidly consolidating banking industry. After unsuccessful or abandoned efforts involving Bank of New England and Shawmut Bank, it agreed to combine with BayBank. The 1996 transaction produced BankBoston, which had more than $62 billion in assets at the end of that year and regained the position of Boston's largest bank by local market presence. Its operations included retail and commercial banking in the United States as well as substantial activities across Latin America. The company also expanded into investment banking by acquiring Robertson Stephens from BankAmerica Corporation in 1998. That strategy was soon overtaken by further industry consolidation. Fleet Bank acquired BankBoston in 1999, creating FleetBoston Financial. Fleet retained the BankBoston name in parts of Latin America while using Fleet branding for most of the combined U.S. organization. In 2004, Bank of America acquired FleetBoston Financial. Bank of America subsequently sold or transferred BankBoston's Latin American operations, including businesses in Peru, Colombia, Panama, Brazil, Chile, Uruguay, and Argentina. The transactions were completed over several years, and the BankBoston name disappeared from branches as local purchasers converted the operations to their own brands. The BankBoston trademark was excluded from the Brazilian asset transaction and could not continue to be used there under the sale agreement. Following the divestitures, BankBoston no longer operated as a broad branch-based banking franchise. The name remained associated with a private-banking subsidiary owned by Bank of America, while the historical consumer and corporate banking brand was discontinued. Accordingly, BankBoston is best understood as a legacy banking brand with an ongoing limited subsidiary presence rather than as an independent publicly traded bank.

BankBoston's corporate identity dates from 1996, when Bank of Boston merged with BayBank. Its institutional history, however, reaches back to the Massachusetts Bank, established in Boston in 1784. The Massachusetts Bank was created by merchants seeking an American alternative for international payments and trade. It received one of the earliest bank charters in the United States and became involved in overseas commerce at an early stage, including financing connected with trade to China and Argentina. The institution's early account holders included John Hancock, Samuel Adams, Paul Revere, and Henry Knox. In 1864, the Massachusetts Bank adopted the name Massachusetts National Bank. It merged with the First National Bank of Boston in 1903. The First National Bank had originated as the Safety Fund Bank in 1859 and entered the national banking system in 1864. After the merger, the combined institution operated briefly under a Massachusetts-related name before becoming the First National Bank of Boston. It expanded its New England presence and acquired Old Colony Trust Company in 1929. The bank also maintained an international profile, particularly in Latin America. The U.S. banking reforms of the 1930s required the separation of commercial banking from investment banking. As a result, the First National Bank of Boston divested its investment-banking arm, which became First Boston Corporation. In 1970, the commercial bank was reorganized under First National Boston Corporation. During the 1970s and 1980s it pursued regional expansion, acquiring other New England institutions. In 1978, the bank successfully challenged a Massachusetts restriction on corporate political contributions in First National Bank of Boston v. Bellotti. The Supreme Court held that the restriction violated the bank's First Amendment rights. The institution changed its operating name to Bank of Boston in 1982, followed by acquisitions including Colonial Bancorp in 1985 and BankVermont Corporation in 1987. The institution faced a difficult competitive environment in the early 1990s. It did not win the bidding for the failed Bank of New England, and a proposed combination with Shawmut Bank did not proceed. Fleet Bank later merged with Shawmut, increasing pressure on Bank of Boston to build scale. Bank of Boston then agreed to acquire BayBank. BayBank's predecessor organizations had developed a large Massachusetts retail network through decades of consolidation, and the combination gave the new BankBoston a major branch and automated-teller-machine presence in the state. BankBoston operated as a diversified financial institution with retail banking, commercial banking, investment banking, international trade services, and Latin American operations. In 1998 it acquired Robertson Stephens from BankAmerica Corporation. The expansion was brief, because Fleet Bank acquired BankBoston in 1999. The resulting FleetBoston Financial retained BankBoston's former Boston headquarters and continued using the BankBoston name in selected Latin American markets, where the legacy franchise had substantial recognition. Bank of America acquired FleetBoston Financial in 2004. It chose to dispose of most of the inherited BankBoston Latin American network rather than operate it as a central part of its domestic banking strategy. Operations in Peru, Colombia, and Panama were sold to Banco General in December 2004. Brazilian assets were sold to Banco Itaú in 2006, while Itaú also acquired operations in Chile and Uruguay. The Chilean and Uruguayan businesses continued using the BankBoston name temporarily during the transition before being converted to Itaú branding. BankBoston Argentina was sold to Standard Bank after approval by Argentina's central bank; completion in April 2007 ended the brand's branch presence there. The name therefore ceased to function as a major independent retail or commercial banking brand. BankBoston continued in a narrower form as a private-banking subsidiary owned by Bank of America, while the operating businesses that had made it prominent in New England and Latin America were integrated into successor institutions.

1. 2007Argentine branch brand ends

   The sale of BankBoston Argentina to Standard Bank is completed, ending BankBoston's presence as a branch brand in Argentina.

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2. 2006Brazilian assets sold to Banco Itaú

   Bank of America sells BankBoston's Brazilian assets to Banco Itaú in exchange for Itaú shares; the BankBoston name and trademarks are excluded from the transaction.

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3. 2004Acquisition by Bank of America

   Bank of America acquires FleetBoston Financial, bringing BankBoston's remaining businesses under Bank of America ownership.

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4. 1999FleetBoston merger

   Fleet Bank acquires BankBoston and forms FleetBoston Financial.

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5. 1998Robertson Stephens acquisition

   BankBoston acquires Robertson Stephens from BankAmerica Corporation, expanding its investment-banking activities.

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6. 1996BankBoston is launched

   Bank of Boston merges with BayBank, creating BankBoston and combining a major New England retail network with commercial and international banking operations.

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7. 1982Bank of Boston name adopted

   The institution changes its principal banking name to Bank of Boston.

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8. 1970Holding-company reorganization

   The bank reorganizes under First National Boston Corporation and begins a renewed program of regional acquisitions.

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9. 1929Old Colony Trust is acquired

   The First National Bank of Boston acquires Old Colony Trust Company during a period of expansion before the Great Depression's full effects on banking.

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10. 1903Merger with First National Bank of Boston

    The Massachusetts Bank merges with the First National Bank of Boston, creating the institutional predecessor that later operated as Bank of Boston.

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11. 1791Early American voyage to Argentina financed

    The bank finances an early voyage by an American ship to Argentina, foreshadowing its later Latin American network.

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12. 1786Early trade finance to China

    The Massachusetts Bank finances an early United States trade mission to China, contributing to the institution's long international orientation.

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13. 1784Massachusetts Bank is founded

    The Massachusetts Bank, a principal predecessor of Bank of Boston and BankBoston, is established in Boston and receives one of the earliest bank charters in the United States.

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A historically Boston-centered full-service bank combining New England retail and commercial banking with long-standing Latin American and international operations.

• Retail bankingConsumer banking1996

  Through Bank of Boston and BayBank, BankBoston offered branch-based consumer banking in New England, including deposit accounts, transaction services, lending, and access to a large Massachusetts branch and automated-teller-machine network.

• Commercial bankingBusiness banking1996

  The bank served commercial customers through lending, deposits, cash management, trade finance, and related banking services. Its commercial franchise was supported by Bank of Boston's long history with merchants and businesses in the Boston region.

• Latin American bankingInternational banking1786

  Latin American operations were among BankBoston's most distinctive assets. The predecessor Bank of Boston maintained banking businesses and branches across major markets including Argentina, Brazil, Chile, Colombia, Panama, Peru, and Uruguay. These operations were sold by Bank of America after its acquisition of FleetBoston.

• Investment banking through Robertson StephensInvestment banking1998

  BankBoston owned Robertson Stephens after acquiring the investment bank from BankAmerica Corporation in 1998. The business represented an expansion beyond traditional commercial and retail banking, although the BankBoston organization was acquired by Fleet the following year.

• Private bankingPrivate banking

  After the sale of its branch-based Latin American businesses, BankBoston remained associated with a narrower private-banking subsidiary owned by Bank of America. This residual operation differs from the former BankBoston retail and commercial banking network.

• 2004Divest inherited BankBoston Latin American assetsM&A

  After acquiring FleetBoston, Bank of America focused on expanding its U.S. domestic franchise and chose to dispose of much of the inherited Latin American network.

  What changed. Bank of America sold operations in several Latin American countries to local or regional financial institutions over the following years.

  Aftermath. The branch-based BankBoston brand disappeared across Latin America, leaving only a narrower private-banking presence under Bank of America ownership.

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• 1999Accept acquisition by Fleet BankM&A

  Fleet Bank had become a dominant New England institution through earlier acquisitions and sought further scale through BankBoston.

  What changed. Fleet Bank acquired BankBoston and combined the businesses under FleetBoston Financial.

  Aftermath. Fleet retained BankBoston branding in selected Latin American markets while integrating most U.S. operations into FleetBoston.

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• 1998Acquire Robertson StephensM&A

  BankBoston sought to broaden its financial-services platform beyond commercial and retail banking.

  What changed. BankBoston purchased Robertson Stephens from BankAmerica Corporation in a transaction reported at approximately $800 million.

  Aftermath. The acquisition was followed soon afterward by Fleet Bank's acquisition of BankBoston, which ended BankBoston's independent corporate strategy.

  Reported transaction value. Approximately $800 million (1998)

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• 1996Merge with BayBank to create BankBostonM&A

  Bank of Boston needed additional scale in a consolidating New England banking market, while BayBank contributed a substantial Massachusetts retail network.

  What changed. The institutions combined and adopted the BankBoston name, creating a bank with more than $62 billion in assets at the end of 1996.

  Aftermath. The merger restored Bank of Boston's position as Boston's largest bank by local market presence, but the combined organization was acquired by Fleet Bank three years later.

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• 2007BankBoston brand disappears from Argentine branches

  The sale of BankBoston Argentina to Standard Bank was completed, ending the brand's presence in Argentine branches.

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• 2004Bank of America acquires FleetBoston Financial

  Bank of America purchased FleetBoston Financial to expand its presence on the U.S. East Coast. BankBoston's remaining international assets were subsequently divested.

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• 2004Bank of America sells BankBoston operations in Peru, Colombia, and Panama

  Bank of America sold the BankBoston operations in these three countries to Banco General of Panama.

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• 1999Fleet Bank acquires BankBoston

  Fleet Bank acquired BankBoston, forming FleetBoston Financial and combining two major New England banking organizations.

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• 1998BankBoston acquires Robertson Stephens

  BankBoston acquired the investment bank Robertson Stephens from BankAmerica Corporation in a transaction reported as approximately $800 million.

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• 1996BankBoston is created through the merger of Bank of Boston and BayBank

  The merger combined Bank of Boston's commercial and international franchise with BayBank's Massachusetts retail network and established the BankBoston brand.

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1. BankBoston