Fed approves JP Morgan purchase of Bear Stearns bank

WASHINGTON (Reuters) - The Federal Reserve Board on Tuesday formally gave its approval to JP Morgan Chase (JPM.N: Quote, Profile, Research, Stock Buzz) to purchase a banking unit of Bear Stearns BSC.N.

The Fed had helped orchestrate the JP Morgan takeover of Bear Stearns to sooth tensions on Wall Street but had not formally given a green light to the takeover of the Bear Stearns Bank & Trust based in Princeton, New Jersey.

In a statement, the Fed said that its permission was not required for JP Morgan to buy Bear Stearns Companies, Inc.

"Based on all the facts and circumstances, the Board has determined that an emergency exists requiring expeditious action on the proposal," reads the statement concerning the bank purchase.

(Reporting by Patrick Rucker; Editing by Diane Craft)