Bank Of America has agreed to acquire Fleet Boston for $47.85 billion in stock, the Wall Street Journal reports.

The new bank, to be called ‘Bank Of America’, will become the second largest consumer bank in the U.S. with $33 million customers and branches in almost every region of the country. Currently JP Morgan Chase & Co. is second, behind Citigroup.

The combined company will also have 9.8% of the banking deposits in the U.S. and have the first, second or third largest market share in 21 of the 29 states where it operates.

Kenneth D. Lewis, chairman and ceo of Bank of America, will be CEO of the new bank. Meanwhile, Charles K. Gifford, ceo of FleetBoston, will chair the merged company and work from FleetBoston’s offices in Boston.

The acquisition comes at an almost ironic time for BOA. As of late, the company has been dogged by the mutual fund market timing scandal enveloping much of Wall Street and one of its former managers, Theodore Siphol III sued the bank last week to cover his legal fees. Siphol plead guilty to securities fraud last month.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE