Bank Merger Spawns New Fund

A new, $100-million charitable foundation is expected to be created through the proposed merger of Fleet Financial Group and BankBoston.

The merger, which would create the nation’s eighth-largest bank, with assets of nearly $180-billion, is pending approval from financial regulators and the U.S. Justice Department.

While plans for the new foundation are unclear, officials from both banks expect the fund to handle nearly all charitable giving for the combined company, which may be called Fleet Boston Corporation.

The officials also say that Fleet Boston’s donations will equal the total amount given by both banks before the merger. Last year, each bank gave about $14-million to charity.