Fed approves Schwab acquisition and comments on supervision and CRA competition

The Federal Reserve has approved the acquisition by Charles Schwab of US Trust. This acquisition was considered the first major test of the Gramm-Leach-Bliley Act provisions, which allow banks, insurance underwriters, and securities underwriters to affiliate with one another. It was also considered significant because Schwab was the first large non-bank acquiror since the passage of GLBA to acquire a major bank.