After two years of sidestepping reserve requirements on checking accounts, First Union Corp. is taking the high road - sort of.

In August, the Federal Reserve Board voted to prevent the North Carolina company from continuing a practice that it had used to evade the 10% reserve requirement on checking accounts. The bank was sweeping funds nightly into time deposits, which are not subject to reserves.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.