Shareholders back Bank of America merger

Shareholders of Bank of America and FleetBoston have overwhelmingly approved a $47 billion merger that will create the third-…

Shareholders of Bank of America and FleetBoston have overwhelmingly approved a $47 billion merger that will create the third-largest US bank with nearly $1 trillion of assets.

The votes mark the last major steps in a merger process the banks expect to finish in early April.

The combined Bank of America will have about $936 billion of assets, 180,000 employees and 5,700 banking offices in 29 states and the District of Columbia. A published report said up to 13,000 jobs (7 per cent) might be cut.

If the merger goes ahead, Bank of America will briefly be the second-largest bank, but J.P. Morgan Chase is expected to complete a buyout of Bank One, restoring it to second spot behind Citigroup.

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Mr Kenneth Lewis, who will remain Bank of America's chief executive officer, said the company hopes to build a "broad, deep relationship" with customers that "will drive returns for shareholders." Fleet CEO Mr Chad Gifford will become chairman.

The Federal Reserve approved the merger on March 8th, saying the move would not stifle competition. Bank of America will control 9.9 per cent of US bank deposits, just below the 10 per cent maximum.

Bank of America, whose advertising campaign promises "higher standards," has been trying to restore credibility with investors amid concerns it overpaid for Fleet, and its role in financial scandals.