WASHINGTON — The Federal Reserve Board on April 1 announced its approval of the proposal by JPMorgan Chase & Co. to acquire Bear Stearns Bank & Trust.
JPMorgan proposed to acquire more than 25% of the voting shares of Bear Stearns and then merge the two firms.
JPMorgan, with total consolidated assets of approximately $1.6 trillion, is the third largest depository institution in the country, controlling deposits of approximately $511 billion, according to the proposal. The firm operates four subsidiary insured depository institutions in eighteen states.
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Bear Sterns is the 45th largest depository, controlling deposits of approximately $398 million. On consummation of the deal, Morgan would remain the third-largest depository institution, with total consolidated assets of $1.6 trillion. The firm would control deposits of $511 billion, which represent 7.4% of the total amount of deposits of insured depository institutions in the United States.
The Fed said it has provided notice to the primary federal and state supervisors of Bear Stearns and the Department of Justice and all have indicated they have no objection to the consummation of the merger.
The Fed said the transaction may not be consummated before the fifth calendar day after the effective date of its order, or later than three months after the effective date, unless the period is extended for good cause by the Board or by the Federal Reserve Bank of New York.
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