FED APPROVES INSURANCE ROLE FOR SOVRAN <SOVN>
The Federal Reserve Board said it
approved Sovran Financial Corp's application to retain shares
in Sovran Insurance Corp of Bethesda, Md.
    Sovran controls banks in Maryland, Virginia and the
District of Columbia and last year acquired Suburban Bancorp
which controlled an insurance subsidiary.
    Insurance industry trade groups objected to Sovran's
application, but the Fed ruled that Sovran was entitled to
retain indirect control over Sovran Insurance under special
grandfather exemptions to the prohibition against banks
engaging in insurance under the Garn-St Germain bank law.
 Reuter
