Fed Clears Wachovia Deal for Central Fidelity

The Federal Reserve Board on Monday approved the plan by Wachovia Corp., Winston-Salem, N.C., to buy Central Fidelity Banks, Richmond, Va.

The $3.2 billion deal, unveiled June 24, would boost Wachovia's assets to $58.2 billion. The Fed also gave Wachovia permission to acquire an insurance agency operated by Central Fidelity.

Wachovia cleared the way for approval when it agreed Friday to divest nine branches in Virginia to resolve Justice Department antitrust concerns. It expects to close the Central Fidelity acquisition in mid-December.

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