Fed OKs merger of Bank One, J.P. Morgan Chase

WASHINGTON -- The Federal Reserve has cleared the way for Wall Street powerhouse J.P. Morgan Chase to combine with and absorb Chicago-based Bank One, forming the nation's second-largest bank with more than $1 trillion in assets.

The Fed's board of governors, including chairman Alan Greenspan, voted 6-0 Monday to approve the megamerger, finding that it would not threaten competition or unduly concentrate banking resources.

Following the Fed's announcement, the two companies said they had set July 1 as the effective date of their merger.