P. M. BRIEFING : Bank Acts to Cover Bad Loans
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BOSTON — 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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