Fed OKs BofA's Merrill Lynch Deal

CHARLOTTE, N.C. -- Bank of America (BAC Quote) said Wednesday that the Federal Reserve's governing board has approved the company's purchase of Merrill Lynch (MER Quote)

Charlotte-based Bank of America said it expects to close the transaction by the end of the year, pending shareholder and additional regulatory approvals.

The deal, which was announced on Sept. 15, originally valued shares of New York-based Merrill at $29 each, or about $50 billion.

Bank of America said it will have the world's largest wealth management business once the transaction is completed, with nearly 20,000 financial advisers and about $2.5 trillion in client assets.

Bank of America announced the Fed's approval after its shares rose 63 cents, or 4.3%, to close at $15.43. Shares of Merrill Lynch gained 85 cents, or 7.5%, to close at $12.21.