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Article: Federal Reserve rejects Northeast Bancorp deal. (concern for Bank of New York's capital ratios prompts Fed to block seven-year-old agreement)
- Article from:
- Fairfield County Business Journal
- Article date:
- August 20, 1990
- Author:
CopyrightCOPYRIGHT 1990 Westfair Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Federal Reserve rejects Northeast Bancorp deal
The Federal Reserve Board, citing its concern for the Bank of New York's capital position, has blocked the bank's seven-year-old plan to acquire New Haven-based Northeast Bancorp Inc.
"Our application to buy Northeast Bancorp was rejected. The deal is off," said Michael Pascale, vice president of investor relations for the Bank of New York. "In light of the Federal Reserve Board's action, I don't see how we can proceed further."
Since 1983, the Bank of New York has sought to acquire all of the voting shares of Northeast Bancorp, whose primary subsidiary is Stamford-based Union Trust Co. The two ...