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Fed OKs megabank deal
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August 17, 1998: 4:22 p.m. ET
$60B merger to form nation's largest bank clears final regulatory hurdle
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NEW YORK (CNNfn) - The $60 billion merger between NationsBank Corp. and BankAmerica Corp. received final regulatory approval from the Federal Reserve, the nation's central bank said Monday.
Similar to last week's conditional approval from the Justice Department, the Fed ruled the bank merger is permissible so long as NationsBank divests 17 branches in three local markets in New Mexico. The Charlotte, N.C.-based financial institution also must report semi-annually on all branch closings for two years after completion of the deal.
The conditional approval comes after BankAmerica recently confirmed layoff projections in a proxy filing with the Securities and Exchange Commission.
Roughly 5,000 to 8,000 positions, or up to 4 percent of the staff, will likely be cut and the banks estimated a charge of $800 million for restructuring and severance.
NationsBank and BankAmerica shareholders are slated to vote on the pact Sept. 24. The deal is expected to close by October.
The deal, first announced in April, would form the largest bank holding company in the nation, with about $570 billion in assets and a coast-to-coast presence.
Shares of NationsBank (NB) rose 2-9/16 to 72-5/8 in Monday trading. BankAmerica's stock (BAC) climbed 1-13/16 to 81-3/16.
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