WASHINGTON (Reuters) - The Federal Reserve said on Sunday it approved the takeover of Wachovia Corp and its banking subsidiaries by Wells Fargo & Co of San Francisco.
The Fed's decision formally made Wells Fargo the victor in a battle between it and Citigroup, which also had sought to acquire the Charlotte, North Carolina-based bank. Citigroup dropped out of the chase last Thursday.
The Fed said it had contacted federal supervisory authorities for the banks as well as the Department of Justice and said "those agencies have indicated that they have no objection to the approval of the proposal."
The Fed said that because of the "unusual and exigent circumstances affecting the financial markets, the weakened financial condition of Wachovia and all other facts" it had shortened the notice period it generally gives regulators about such takeovers.
The deal could be completed in five days, the Fed said.
(Reporting by Glenn Somerville; Editing by Andrea Ricci)
