WASHINGTON -- Bank-America Corp.'s recent bailout of a proprietary mutual fund managed by its lead bank set off no alarm bells at the Federal Reserve, according to Fed Governor John LaWare.

In an interview this week, Mr. LaWare characterized the bailout as an "unusual circumstance" that raises no concerns about the safety and soundness of the banking system.

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.