The architects of the Chase Manhattan-Chemical merger have decided that the nation's next No. 1 bank will use a state charter, a move that will cost the Office of the Comptroller of the Currency prestige and more than $8 million a year in fees.

The new Chase Manhattan Bank Corp. will keep Chemical Bank's New York State charter, Chemical and Chase said Wednesday. The bank will be regulated by the New York State Banking Department and the Federal Reserve Bank of New York.

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