WASHINGTON — The U.S. Federal Reserve on Tuesday announced approval of the J.P. Morgan Chase & Co. proposal to acquire Bear Stearns Bank & Trust.
J.P. Morgan Chase is based in New York. Bear Stearns Bank & Trust is in Princeton, N.J., and is a subsidiary of Bear Stearns Cos.
The Fed said J.P. Morgan Chase isn't required under the Bank Holding Company Act to obtain its approval to acquire the New York-based Bear Stearns Cos.
"Based on all the facts and circumstances, the board has determined that an emergency exists requiring expeditious action on the proposal," the Fed said in an order approving the acquisition of the Bear unit.
J.P. Morgan Chase has total consolidated assets of about $1.6 trillion.
Bear Stearns Bank & Trust controls deposits of about $398 million.
Last month, the Fed and J.P. Morgan Chase stepped in to keep Bear Stearns afloat following a severe cash crunch.
