Capital Briefs: Go-Ahead for Canada Bank to Buy In to Meca

The Federal Reserve Board gave Royal Bank of Canada permission to invest in Meca Software, the home banking software provider co-owned by subsidiaries of NationsBank Corp. and BankAmerica Corp.

The Fed said the deal could proceed even though Meca produces nonbanking computer products, including games, security programs, and a medical reference library.

To assure approval, Meca and Royal Bank agreed that the software company would not produce additional nonfinancial products.

Melanie Fein, a partner in the Washington law firm of Arnold & Porter, said this is the first time the Fed has allowed a bank to buy a company that produces nonbanking software. The move came after the Office of the Comptroller of the Currency gave NationsBank and BankAmerica permission to invest in the project.

The Fed also gave UJB Financial Corp. of Princeton, N.J., permission Tuesday to acquire Flemington National Bank & Trust Co., Flemington, N.J.

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