BANKING & FINANCE - Dec. 25, 1995

Judge Rules Bank of Boston Violated Law: An administrative law judge ruled that the bank broke securities laws in 1989 when it failed to warn investors of pending losses caused by problem real estate loans. The judge criticized the bank and former Chief Executive Ira Stepanian for failing to tell investors in quarterly disclosure statements with the Securities and Exchange Commission that its real estate loan portfolio was deteriorating. The judge ordered Bank of Boston Corp. to obey the law and no financial penalties were imposed. Bank of Boston objected to the ruling. “We strongly disagree with the decision, which we believe results from an incorrect interpretation of the SEC’s own guidelines and from hindsight, years after the events in question,” a spokeswoman said.