The board of Shawmut National Corp. did not resolve issues relating to a merger with Bank of Boston Corp. when it met Tuesday night, according to a source close to the bank.
Bank of Boston's board of directors is meeting tonight, but no announcement is expected to be made after the meeting, according to well-placed sources.
In meetings with regulators earlier this week, officials of both banks were pressed to raise more than the $625 million originally planned, Washington sources said.
Nancy Bush, an analyst for Brown Brothers Harriman & Co., estimates that regulators want an additonal $125 million.
Spokesman at Bank of Boston and Shawmut declined to comment.
Officials from the Federal Reserve Board and the Office of the Comptroller of the Currency are concerned that the original capital plan does not offer a sufficient buffer against the banks' loan problems.