Bank of Boston freed from Fed strictures.

BOSTON--Bank of Boston Corp. said the Federal Reserve Bank of Boston has lifted restrictions imposed two years ago, reflecting improving results at New England's second-largest banking company.

The restrictions, in a memorandum of understanding disclosed in September 1991, required, among other things, regulatory approval to pay stock dividends and carry out certain intracompany transactions.

Ira Stepanian, chairman and chief executive, said lifting of the Federal Reserve restrictions closes "a difficult chapter in our history."

A similar agreement for some of the bank's units that was imposed by the Office of the Comptroller of the Currency was lifted in February.

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