BOSTON -- Massachusetts state regulators approved Bank of Boston Corp.'s petition to acquire Society for Savings Bancorp Inc. and Multibank Financial Corp.
The acquisition proposals were scrutinized last month by federal regulators, who had expressed concerns about whether Bank of Boston's capital was adequate to handle the almost simultaneous acquisitions for a total of about $443 million in stock.
The Federal Reserve Board initially rejected the proposals but later approved the purchases after Bank of Boston pledged to raise more capital. In an unprecedented move, three of the Fed's seven governors abstained from the vote and expressed dissatisfaction with the way the decision was reached.
The Massachusetts Board of Bank Incorporation said that it approved the plan because the purchases will not unreasonably affect competition among banking institutions and that public convenience and advantage will be promoted.
