The Federal Reserve Board approved the merger of Aspen Bancshares, Aspen, Colo., and Val Cor Bancorp., Cortez, Colo., despite objections of Fed Governors Edward W. Kelly Jr. and Janet L. Yellen.

The two governors said they opposed the merger because it would limit competition in Cortez by allowing the market's largest bank, Valley National Bank of Cortez, to combine with the fifth-largest bank, Centennial Savings Bank, Durango, Colo. Together these banks would hold 38% of the deposits in the market, Mr. Kelly and Ms. Yellen said in their dissent.

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