BANKING & FINANCE - March 27, 1996

Motion to Delay Chase-Chemical Merger Denied: A three-judge panel of the U.S. Court of Appeals in New York said it would not grant the stay sought by community group Inner City Press/Community on the Move. The merger of Chase Manhattan Corp. and Chemical Banking Corp, an $11-billion deal that would create the nation’s largest banking company, is scheduled to be completed Sunday. The group has sued the Federal Reserve Board, challenging the central bank’s approval of the merger. It contends that branch closings because of the merger would leave lower- and middle-income neighborhoods underserved by banks. An attorney representing Inner City Press said the group still has a petition before the court on the merits of its case. The petition for a stay alleged that there were errors in the Fed’s approval process.