Fed Approves Merger Of Chemical, Chase

The Federal Reserve Board on Friday approved the largest banking merger in U.S. history, the $10 billion marriage of Chemical Banking Corp. and Chase Manhattan Corp.

The Fed’s decision is just one of several steps before the two prominent banks can combine. The deal needs approval from state banking regulators in Delaware and New York, and the banks themselves say they’re not ready to combine until March 31.

The Fed approval came after a closed meeting, a board spokeswoman said. Details were contained in a report of more than 80 pages, which was not immediately available.

The merger of Chemical and Chase will create a enormous bank with $297 billion in assets, 2,000 offices and a leading position in consumer banking, mortgages, credit cards, corporate lending and other global services.