The Federal Reserve Board on Tuesday approved the Bank’s proposed merger with Bank of Americans, setting up a merger that could hurt US workers by giving the nation’s largest bank too much power over financial markets.
The Fed board approved the merger with the banks on Monday, which is expected to close in the first quarter of 2021.
Bank of American shares rose 5.6% in premarket trading Tuesday morning.
The company has been the target of criticism from Democratic lawmakers and consumer groups for the merger.
The merger has been in the works for more than a year, and the board has been under pressure from Republicans to approve it.
The bank has been at the center of an investigation by the Securities and Exchange Commission into the bank’s use of complex accounting, tax evasion and other fraud in its efforts to win government bailout money in 2008.
The bank has faced criticism for its handling of the crisis.
The SEC is also probing whether the bank engaged in fraudulent trading.