FleetBoston Financial
| Company type | Public |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1999 |
| Defunct | 2004 |
| Fate | Acquired by Bank of America |
| Headquarters | Boston , United States |
Area served | United States, Global |
| Products | Banking, Brokerage services |
Number of employees | 50,000 (approximate) (2003) |
FleetBoston Financial was a banking institution headquartered in Boston, established in 1999 through the consolidation of Fleet Financial Group and BankBoston. In 2004, it was absorbed by Bank of America, with all its branches subsequently rebranded under the Bank of America name.
History
The earliest ancestor of Fleet dates back to 1784 with the creation of The Massachusetts Bank, recognized as the first federally chartered joint-stock bank in the United States. This entity eventually became BankBoston, which later merged into Fleet in 1999.
Fleet’s immediate origin traces to Providence, Rhode Island, where the Providence Bank was founded in 1791 by entrepreneur John Brown. It entered the national banking system in 1865 as Providence National Bank. Over time, it expanded through acquisitions such as Union Trust Company in 1951 and Industrial Trust Company in 1954, culminating in the formation of Industrial National Bank, which served as the principal subsidiary of Industrial National Corporation.
During the mid-1970s, Industrial broadened its operations beyond traditional banking into other financial services and adopted the name Fleet Financial Group in 1982. Its banking division was known as Fleet National Bank. Fleet pursued an aggressive expansion strategy beyond Rhode Island by acquiring the Bank of New England in 1991 and merging with Albany-based Norstar Bancorp in 1988 to create Fleet/Norstar Financial Group. The company reverted to the Fleet Financial Group name in 1992.
By the mid-1990s, Fleet ranked among New England’s top three banks alongside Shawmut National Corporation and Bank of Boston. In 1995, regulatory approval facilitated Fleet’s merger with Shawmut, resulting in New England’s largest bank holding over 30% of regional deposits and ranking ninth nationally. The combined entity operated from Shawmut’s Boston headquarters located at One Federal Street.
In 1996, Fleet acquired the U.S. branch network of British National Westminster Bank. Two years later, it entered the brokerage sector by purchasing Quick & Reilly along with its online platform Suretrade.
Fleet’s most significant merger occurred in 1999 when it combined with BankBoston (which itself had formed from a 1996 merger between Bank of Boston and BayBank). This union elevated FleetBoston to become the seventh-largest bank in the United States by assets ($197 billion as of 2003), employing close to 50,000 individuals and servicing over 20 million clients globally with annual revenues amounting to $12 billion. The corporate headquarters relocated to BankBoston’s former offices at 100 Federal Street. As a condition for regulatory approval, the company divested 306 branches across New England.
In 2000, Fleet acquired Summit Bancorp of New Jersey (formerly UJB Financial) and divested 278 New England branches to Sovereign Bank to satisfy regulatory requirements stemming from the BankBoston merger.
Following its acquisition by Bank of America in 2004, Fleet experienced a modest decline in customer satisfaction ratings; however, Bank of America made substantial investments aimed at enhancing service quality within New England by improving call center operations and increasing staff levels. The former headquarters of Fleet now functions as Bank of America’s regional hub for New England.
Sponsorships
Upon construction of the arena that replaced the original Boston Garden, Fleet secured the naming rights to what was initially called the Shawmut Center, rebranding it as the FleetCenter when it opened in 1995. After FleetBoston was sold to Bank of America in 2004, naming rights were relinquished, leading to its renaming as TD Banknorth Garden (currently known as TD Garden) in 2005. This venue serves as home to both the Boston Celtics (NBA) and the Boston Bruins (NHL).
Controversies
In 2002, Deadria Farmer-Paellmann of the nonprofit Restitution Study Group filed a lawsuit against FleetBoston Financial, along with Aetna and CSX Transportation, seeking reparations and a portion of profits connected to slavery. The complaint claimed these corporations benefited unfairly through their predecessor banks that had participated in the American slave trade prior to abolition. This legal action was ultimately dismissed in 2004.
Additionally, FleetBoston encountered a class-action suit concerning a "bait and switch" tactic involving credit cards, where an initial offer of no annual fees was later replaced by unexpected charges.