BankBoston to Exit Indirect Auto Loan Business.BOSTON--(BUSINESS WIRE)--Aug. 22, 1997-- BankBoston (NYSE NYSE See: New York Stock Exchange :BKB BKB Basler Kantonalbank (Switzerland) BKB Black King Bar (gaming weapon) BKB BV Kwaliteitsverklaringen Bouw (Dutch) BKB BankBoston Corporation ) today announced that it is exiting the indirect auto loan business to focus on other core businesses including commercial lending to auto dealers. Indirect auto loans are loans that are offered to consumers through auto dealers. BankBoston will exit this business by Oct. 31, 1997. The bank has an indirect auto loan portfolio of $1.5 billion. It will continue to service the existing loans until they are paid. Moreover, the bank will continue to offer auto loans directly to consumers via telephone and its extensive four-state branch network, and continue to service auto dealers with "floor-plan" lending through its commercial loan department. "In order to best service our customers and provide shareholder value, we will continue to focus our resources on businesses that meet our financial performance requirements. Given the economics, it made sense to exit this business," said James Cosman, executive director, Consumer Finance. The decision to exit the indirect auto loan business will affect 57 BankBoston employees located in the Dedham, Mass. office. These employees will have an opportunity to seek other employment within the bank. Those employees not placed elsewhere in the bank will be eligible for BankBoston's highly regarded Transition Assistance program (TAP). TAP provides employees with many levels of assistance, including starting a small business and transitional salaried employment at non-competitors and non-profit organizations. BankBoston (NYSE:BKB), with assets of $66.1 billion as of June 30, 1997, was founded in 1784 and is the 15th-largest bank holding company in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . BankBoston is engaged in: consumer banking in southern New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. ; financing to selected corporations regionally, nationally and internationally; and full-service banking in key Latin American markets. The Corporation and its subsidiaries operate through a network of offices in the United States and through more than 100 offices in 23 countries in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Europe and Asia, the third-largest overseas network of any U.S. bank. The Corporation's common and preferred stocks are listed on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Boston stock exchanges The Boston Stock Exchange (BSE) is a regional stock exchange located in Boston, Massachusetts. The third-oldest stock exchange in the United States, it was founded in 1834. On October 2nd, 2007 Nasdaq agreed to acquire BSE for $61 million. . CONTACT: BankBoston Bruce Spitzer (617) 788-7812 |
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