Fleet to buy $500 million of FDIC loans. (Fleet/Norstar Financial Group Inc.)

Fleet to Buy $500 Million Of FDIC Loans

Saying the New England economy is near the bottom of its slump, the chairman of Fleet/Norstar Financial Group unveiled a plan Thursday to buy about $500 million in classified loans from the Federal Deposit Insurance Corp.

"We've all been feeling sorry about the economy," said Fleet's chairman, Terrence Murray. "This initiative will help sound but struggling borrowers get back on their feet."

The FDIC and Fleet said the program will permit the bank to renegotiate the terms of some loans. Most loans held by the government are being liquidated, putting borrowers or some of their projects out of business.

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