Bank of America is to buy US rival Fleet Boston Financial in a $47bn (€40bn) deal that is set to further strengthen its balance sheet and lending capacity. Its added lending power will send a powerful signal to corporate and investment banking competitors.

BoA claims that the new bank will have "the largest share of middle market and large corporate relationships, including more than 95% of the Fortune 500." The deal will also boost BoA's cash management business.