Court Upholds Fed In Banking Case
U. S. District Judge John J. Sirica upheld the Federal Reserve Board yesterday in refusing to allow the Old Kent Bank and Trust Co. of Grand Rapids, Mich, to operate as branches the banks it acquired in a merger last year.	*'</br></br>In the merger, Old Kent took over Peoples National Bank of Grand Rapids, which; operated six branches in addition to its main office.	|</br></br>The Federal Reserve Board refused to approve the operation of the additional branches on grounds this would prob-| ably have an adverse effect1 upon competition in the Grand Rapids area.	I</br></br>Board exceeded its statutory powers by refusing to approve j operation of the additional J branches acquired in the mer-j gcr with Peoples National, a national bank.</br></br>The Federal Reserve Board acknowledged in arguments in the case that it had no authority over mergers as such, but took the position Old Kent was asking for permission to operate new banks.