The Federal Reserve Board on Tuesday issued an enforcement action against Patti Colbourn, a former managing director and trader at Chemical Bank.

The Fed accused Ms. Colbourn of engaging in unsafe and unsound practices while trading mortgage-backed securities for Chemical, which is now doing business as Chase Manhattan Corp. Ms. Colbourn did not admit wrongdoing but agreed to follow the law in the future.

On Monday the Fed gave First of Waverly (Iowa) Corp. permission to acquire Scharge Ltd. and its Farmers State Bank subsidiary. The deal would give First of Waverly $101 million of deposits and control of 29% of the market in Bremer County, Iowa, where the two institutions have competed head to head.

-Jaret Seiberg

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