Fed OKs Bank of America buy of MBNA
Published: Dec. 15, 2005 at 4:59 p.m. ET
Robert Schroeder
WASHINGTON (MarketWatch) -- Federal banking regulators approved Bank of America's $35 billion acquisition of credit-card giant MBNA Corp. on Thursday.
The Federal Reserve OK'd the transaction after it found Bank of America wouldn't control total deposits in excess of a federal cap.
After the transaction, the Fed found, Bank of America BAC, +1.35% would control about 9.7% of deposits of insured depository institutions in the U.S. A federal statute stipulates deposits at one bank can't exceed 10% of all U.S. deposits.
The takeover of MBNA Corp. KRB, +5.75% hasn't faced regulatory challenges beyond the deposit cap.
Bank of America is the second-largest U.S. bank in stock-market value behind Citigroup Inc.
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Robert Schroeder is the Washington bureau chief for MarketWatch. Follow him on Twitter @mktwrobs.