P.M. BRIEFING : Bank of New England in Trouble
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BOSTON — Bank of New England Corp. said today its fourth-quarter losses could reach $450 million, and analysts said the shortfall could plunge the frail bank into insolvency and force the government to take control.
The bank said it has not calculated the final figures for the quarter ended Dec. 31 but said it expects to suffer heavy losses from bad real estate loans.
“Even though the management has been doing a heroic effort to rescue the bank, the economy is stacked against it, the real estate market is stacked against it,” said Gerard Cassidy, an analyst at Tucker Anthony Inc.
The projected losses would wipe out the bank’s shareholder equity, or capital, which totaled $255 million as of Sept. 30, Cassidy said.
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